Formula Systems (FORTY)

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3i beefing up stake in Transtech Control to 22.5%

15.1.06 | 14:10 By Omer Sharvit
Formula Vision Technologies (TASE: FVT) is selling a 13% interest in its subsidiary Transtech Control to the British giant 3i.

Transtech's controlling shareholders - FVT, and the Giza and Accel venture capital funds, have signed a memorandum of understanding with 3i for FVT to sell 13% of the subsidiary for $8.75 million.

3i will also receive an allocation of new shares in exchange for $6.25 million.

After the transaction, FVT will be left with 20% of Transtech, which specializes in monitoring, control, management and guidance systems for airports.

3i will own a 22.5% interest in Transtech.
The transaction remains contingent on due diligence and should be finalized in late February 2006.

Over the last five years FVT has accrued massive losses amounting to NIS 240 million. This transaction should make it NIS 16 million capital gains.

A year ago Giza, Accel and Formula invested $25 million in Transtech.

http://www.haaretz.com/hasen/spages/670543.html

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