ROBO GROUP ( fka ROBO)

[Francois+Goelo]

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http://www.themarker.com/eng/article.jhtml?ElementId=/ibo/repositories/stories/m1_2000/ae20001004_01e.xml&AdType=1_A


Eshed Robotec joint venture YET discussing stock issue in Japan with underwriters at $600m value...

05.10.2000 / 13:17..... Amir Eisenberg

YET, a joint venture of Eshed Robotec (Nasdaq:ROBO) and Japan's Yaskawa, plans to list for trade in Tokyo in early 2001. YET hopes to float on the Tokyo Stock Exchange, listed on the "Mother Board" - Japan's equivalent of the Nasdaq Composite, TheMarker.com has learned. The company is discussing the potential offering with underwriters. If the offering goes ahead, it would be the first by an Israeli company on the Japanese exchange.

YET develops engine monitors, particularly for the robotics industry. Eshed Robotec is located in Rosh HaAyin, and is dual-listed on the Tel Aviv Stock Exchange and on Nasdaq. It is traded at a company value of about $50 million. Yaskawa trades in Tokyo at a $2.2 billion market cap.

David Israel-Rosen, yesterday formally appointed to advance Eshed Robotec’s business, predicted in an interview with TheMarker.com that YET’s IPO will take place at $500 million to $700 million company value, going by the level of multiples on the Tokyo Stock Exchange.

Rosen has experience in Japanese investment banking. He was appointed to look into the various alternatives for business development and financing for Eshed Robotec in Japan, with an emphasis on advancing YET.

It was further revealed that senior Eshed officials are already holding negotiations with underwriters on YET’s possible offering. In all likelihood, YET will offer the public between $100 million and $150 million worth of stock. Some will be sold through a tender offer by Eshed Robotec. Among the underwriters with whom talks are being held are the American investment bank Morgan Stanley Dean Witter and Japan's Nikko Securities.

YET is expected to finish 2000 with revenues of $10 million and net profits of $1.9 million. Its only client is Yaskawa itself. But next year YET is expected to begin supplying to other companies too. According to in-house Eshed forecasts, YET’s profit for 2001 could exceed $3 million.

Among YET’s competitors are giants such as Japan's Mitsubishi and Hitachi, and German conglomerate Siemens. But YET's company’s products are exceptional for being integrative, combining both hardware and software, while the competitors’ products are not integrative.

Rosen’s appointment as adviser to Eshed Robotec in the Japanese market is part of the process Eshed has been undergoing in the last year to transform from an industrial firm to a holdings firm, specializing in robotics, and educational and training software. The company has five subsidiaries and 50% stakes in four more companies.

Eshed is controlled by CEO Rafael Aravot and the other founders, including Menachem Zenziper, Gideon Missulawin, Ahinoam Kra-Oz and Haim Schleifer. Rosen himself also personally invested $1.2 million in 1% of Eshed’s stock a few months ago, at $10 a share. Eshed Robotec closed yesterday at $4.5.