Elron Receives Non-Binding Indication Of Interest To Acquire Medingo

Elron has announced that a non-binding indication of interest of a third party regarding a potential acquisition of Medingo, an Elron subsidiary, has been received.

The company claims that the indication relates to an acquisition of Medingo’s share for cash ranging from $150m to $170m and a contingent additional cash consideration conditional upon one or more milestone(s) to be mutually agreed, which may bring total consideration up to between $185m and $213m.

The company said that the transaction would be subject mainly to the parties entering into a mutually agreed definitive agreement, satisfactory completion of a full due diligence by the third party and the parties obtaining applicable corporate and regulatory approvals.

Reportedly, in the event of consummation of such transaction, Elron would be expected to record a net gain initially estimated at this stage to be between approximately $54m and approximately $80m. The gain includes Elron’s share in the net gain expected to be recorded by RDC Rafael Development Corporation (RDC), through which Elron owns part of its holding in Medingo.

Medingo is 92% held by Elron (including 83% held by RDC, Elron’s 50.1% subsidiary). Medingo is engaged in the development and commercialisation of a miniature insulin dispensing patch pump for the needs of insulin-dependent diabetic patients.