Batam is considering selling its subsidiary NGSoft for about NIS 105 million – the capital market

Batam, which also trades on the London Stock Exchange (NYSE: BVC) and focuses on developing, manufacturing and marketing communication systems and cyber and medical equipment for laboratory testing, is interested in concentrating efforts on its core activities and expects its development to rapidly identify diseases including corona, has significant growth potential. Its activities in the Authority and Cyber ​​Division. In an interview with BizPortal, Marom recently warned that: “The corona will not be the only epidemic in the coming decades.”

According to the company, NGSoft is primarily a software and digital services company that provides digital and technological solutions. However, since its development activities are not related to the group’s NFV or cyber activities, the said board of directors decided on the sale.

Under the terms of the agreement, Batm will be able to sell its holdings in NGSoft for NIS 105.1 million, and Batam will actually receive NIS 93.7 million, a payment that includes a loan repayment of NIS 15.5 million from NGSoft and a dividend payment of NIS 2.1 million. Some NGSoft employees will receive the balance of the consideration in the amount of NIS 11.4 million as a result of the exercise of options.
If Batam exercises the option, an agreement to purchase shares currently held by a trustee will take effect. Batm’s option is valid until March 1, 2021 and can be extended until May 17, 2021. If it does not exercise the option, it will pay the buyer a consideration of up to NIS 7.9 million, and will update the stock exchange accordingly.

According to the company: “By 2020 the Group has achieved key milestones in the development progress of its virtual network (NFV) operations, including successful completion of feasibility trials of its NFV solution with Vodafone and has secured a multi-year license agreement with First Tire-1 customer in the field. “The diagnostics, the biomed division, has rapidly developed a large number of solutions in response to the corona outbreak, which are in great demand and increase with the duration of the epidemic.”

“We treat viruses and other pathogens as a matter of routine, and as soon as we saw the coronavirus spread, we began developing a series of diagnostic components needed to deal with the epidemic,” said Dr. Zvi Marom, co-founder and CEO of Batam. Rabbah has led to a 100% increase in its share price this year.Marom is one of BizPortal’s system choices in BizPortal’s People of the Year project for 2020 (for the full interview).