Elron completes oversubscribed tender offer for Starling convertibles

By Angela McDaniels

Tacoma, Wash., Oct. 28 - Elron Electronic Industries Ltd. said it received tenders for 12,146,888, or 28.67%, of Starling Advanced Communication Ltd.'s series A convertible debentures during a partial tender offer that ended Oct. 27.

The company offered on Oct. 12 to purchase up to 10,139,455 convertibles.

Elron has accepted for purchase 10,139,455 convertibles on a pro rata basis based on a proration factor of about 83.5%, according to an Elron news release.

Holders will receive NIS 0.90 per convertible, of NIS 9.13 million in total. The company said payment will be made "promptly" through depositary Clal Finance Batucha Investment Management Ltd.

After paying for the tendered convertibles, Elron will beneficially own 62% of Starling's outstanding convertibles.

Elron is a Tel Aviv, Israel-based technology holding company.

Starling produces antenna systems and is based in Yoqneam, Israel. It is held about 68% directly and indirectly by Elron and its subsidiary, RDC - Rafael Development Corp. Ltd.

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