Written by: Aaron Katsman | February 5, 2009
The deal that took Israeli tech firm NDS private after a buyout from Newscorp (NYSE: NWS), was completed. According to Globes: “NDS Group plc is now a private company, after the High Court of Justice in England and Wales approved the remaining elements of the share buyout by Robert Murdoch’s News Corporation and two subsidiaries of funds advised by Permira Advisers LLP, effective today. NDS’s share was delisted from trading on Nasdaq yesterday. News Corp and Permira bought the public’s stake in NDS at $63 per share for a total of $3.7 billion.”
This marks the end of one of Israel’s better performing stocks.
Written by: Aaron Katsman | January 15, 2009
In a near unanimous vote, shareholders approves the acquisition of NDS by News Corp, paving the way for the company to go private. Company officials still believe that the agreed upon $63/share price will hold up even though the company has struggled somewhat with the global economic downturn.
According to a Globes report: “News Corporation and funds controlled by private equity firm Permira Advisers will pay $63 per share, and would together own the entire company. The shares would be cancelled and NDS will become a private company. News Corporation will own 49%, and the Permira funds would own approximately 51% of NDS. ”
The next hurdle the deal faces will be in UK courts and by the end of the first week of Feb. we should know the outcome.
Written by: Aaron Katsman | August 5, 2008
After sporting a strong earnings report, NDS Group (NNDS) announced that they have raised their offer to take the company private. According to Business Wire: ” … that the independent committee of its board of directors has reached an agreement in principle with News Corporation and two subsidiaries of funds advised by Permira Advisers LLP on a price at which News Corporation and the Permira entities would acquire all issued and outstanding NDS Series A ordinary shares, including those represented by American Depositary Shares traded on NASDAQ, for per share consideration of $63 in cash. The consummation of the transaction would result in NDS ceasing to be a public company, and the Permira entities and News Corporation owning approximately 51% and 49% of NDS, respectively.”
The deal is subject to approval from a host of regulators, shareholders, etc. Initially the deal was to be at $60/share, but with the company producing strong results, they received and opinion from Citigroup Capital Markets (C) who recommended $63 as a fair price.
We wrote back in July how we thought this may be a new trend, taking public companies private. Check out that post, here. The difference in the NDS case is that they are a company who continue to produce stellar results and whose share price has held up, not dropped by 80% like other companies.
Disclosure: Author’s fund has a position in NNDS. He has no position in any other stock mentioned as of 8/05/08.
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Aaron Katsman is Managing Editor of the Israel Opportunity Investor newsletter. He is lead portfolio manager for the Israel Growth Portfolio and Managing Director of America Israel Investment Associates, LLC. For more information, go to www.israelnewsletter.com or call 1-888-327-6179, or email aaron@profile-financial.com.
