Israel UAV maker Aeronautics gets 850 million shekel buyout offer

A Firefly drone by Rafael Advanced Defense Systems is on display during the Eurosatory International Defence Exhibition in Villepinte, north of Paris, France June 11, 2018. REUTERS/Gonzalo Fuentes

JERUSALEM (Reuters) – Israeli unmanned aerial vehicle maker Aeronautics (ARCS.TA) said on Sunday it received an offer to be acquired by state-owned Rafael Advanced Defense Systems and businessman Avihai Stolero for 850 million shekels ($232 million).

Aeronautics, which has a market value of 507 million shekels, said the offer for all its shares would be done as a reverse merger executed through a company jointly owned by Rafael and Stolero.

Aeronautics would become private and its shares delisted from the Tel Aviv Stock Exchange.

Negotiations will take place until Feb. 15. In the meantime, Rafael will conduct its due diligence.

Last August, Aeronautics rejected a 430 million shekel acquisition from Rafael and Stolero.

Earlier this month, state-owned Israel Aerospace Industries [ISRAI.UL] said it was in early talks to invest in Aeronautics.

Aeronautics manufactures unmanned aerial vehicles for military surveillance and defense purposes, as well as for the commercial sector.

($1 = 3.6699 shekels)

Reporting by Steven Scheer; Editing by Tova Cohen

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