ECI Telecom agreed to be acquired by affiliates of the Swarth Group, an investment vehicle controlled by Shaul Shani, and certain funds that have appointed Ashmore Investment Management Limited as their investment manager for approximately $1.2 billion in cash. The deal effectively privitazes the company, which is currently listed on NASDAQ.
ECI shareholders will receive $10 per share in cash at closing, representing a premium of approximately 22% over ECI’s average closing share price during the 30 trading days ended June 15, 2007.
The Board of Directors of ECI has approved the agreement and recommended that ECI shareholders vote in favor of the transaction. Each of Koor Industries, Clal Industries & Investments and a group led by Carmel Ventures, the owners of an aggregate of approximately 44% of ECI’s outstanding ordinary shares, have entered into voting undertakings with the buyers under which they have agreed to vote their shares in favor of the transaction.
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