Delta Galil Industries Ltd., a private Israeli apparel manufacturer with facilities in Jordan, Egypt and Turkey, has issued a tender offer to repurchase at a price of $11 per share up to an aggregate of 565,000 of its ordinary shares and American Depositary Shares, representing approximately three percent of its outstanding shares.
The aggregate consideration to be paid by the company is approximately $6.2 million. The offering price is approximately 18.9 percent higher than the last sale price of the American Depositary Shares on Nasdaq on the last trading day. The offering price is approximately 13.9 percent higher than the last sale price of the Ordinary Shares on the Tel Aviv Stock Exchange on the last trading day.
The tender offer will commence on November 25, 2002, or as soon as possible thereafter, and will expire at 5 p.m. New York time on December 23, 2002, unless extended by the company, according to a press release.
Certain controlling shareholders and directors of the company have indicated their intention to participate in the tender offer. Because the offer will, therefore, be over-subscribed, shares will be purchased from all shares tendered on a prorata basis. The tender offer will not be conditioned on any minimum number of shares being tendered.
Delta’s Board of Directors of has approved the tender offer but neither the company nor the board is making any recommendation to shareholders as to whether to tender or refrain from tendering their shares. Shareholders must make their own decision whether or not to tender their shares and, if so, how many shares to tender.
Delta Galil is a leading global manufacturer of intimate apparel, men's underwear, socks, baby-wear and leisurewear for the mass market sold under brands such as Ralph Lauren, Donna Karan, Calvin Klein, Hugo Boss and Nike. Delta's products are sold worldwide through retailers including Marks & Spencer, Victoria's Secret, GAP, Banana Republic, Carrefour, J. Crew, Target, Wal-Mart and others.
Headquartered in Israel, Delta operates manufacturing facilities in Israel, Scotland, Jordan, Egypt, Turkey, Eastern Europe, North and Central America, Caribbean and Far East. Delta concluded its US IPO in March of 1999. — (menareport.com)
© 2002 Mena Report (www.menareport.com)
