Drone maker Aeronautics gets $232 mn buyout offer

JERUSALEM: Israel’s state-owned Rafael Advanced Defense Systems and businessman Avihai Stolero have offered to buy unmanned aerial vehicle maker Aeronautics for 850 million shekels ($232 million). The news sent shares of Aeronautics up 37% in morning trade in Tel Aviv on Sunday. Aeronautics rejected a 430 million shekel offer from Rafael and Stolero last August. Aeronautics, which had a market value of 507 million shekels on January 10, said the latest offer for all its shares would be done as a reverse merger executed through a company jointly owned by Rafael and Stolero. The company would become private and its shares delisted from the Tel Aviv Stock Exchange. Aeronautics said it had agreed to hold talks with the potential buyers and committed to giving them exclusivity. Negotiations will take place until February 15, during which time Rafael will conduct due diligence. Earlier this month, state-owned Israel Aerospace Industries said it was in early talks to invest in Aeronautics.