Malam Team to Delist After Parent Company Completes Tender Offer

Malam Team's parent company, Malam Team Holdings, has successfully completed a tender offer to acquire the remaining shares of Malam Team, leading to the subsidiary's planned delisting from the stock exchange. Malam Team Holdings currently owns 65.5% of Malam Team, whose market value is approximately 1.2 billion shekels. However, Malam Team Holdings itself trades at a market capitalization of 960 million shekels, reflecting a 20% discount relative to the net asset value of its holdings, a common phenomenon among holding companies due to potential taxes, overhead costs, and investor reluctance to pay full asset value on paper.

Malam Team specializes in IT solutions and services. The company is chaired by Shlomo Eisenberg, who controls 45% of Malam Team Holdings, and its CEO is Ilan Tucker. Malam Team Holdings offered to purchase the remaining 34.5% of Malam Team shares from minority shareholders at a rate of 0.555 shares of Malam Team Holdings per Malam Team share, valuing each share at 80.75 shekels. Shareholders representing 30.2% of Malam Team accepted the offer, increasing Malam Team Holdings' ownership to over 95.6%, which triggers a compulsory acquisition of the remaining shares.

Following this process, Malam Team will become a fully private company under Malam Team Holdings, which will remain publicly traded. On the day of the announcement, Malam Team's share price fell by 3.6% to a level close to the tender offer price. Over the past year, Malam Team's stock declined by 19.2%, while the Tel Aviv Communications and Information Technology Index, which includes the company, rose by 6% during the same period.