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SerVision subsidiary sale approved but company unlikely to gain any value from deal

By BFN News | 07:33 AM | Thursday 14 June, 2018


Further to the announcement released by the Company on 5 June, the Board of SerVision said that, on 10 June 2018, the Jerusalem District Court in Israel heard the Trustees' proposal for the disposal of SerVision, the company's main operating subsidiary. At this hearing, the court approved the sale of SerVision to ADI Systems (ADI) for NIS7m payable in cash (equivalent to approximately £1.46m/$1.96m at the prevailing exchange rates). ADI was established in 1984 and is based in Rishon Letzion, Israel. ADI imports, markets and installs a variety of smart products for the Israeli car market including audio, multimedia, convenience, communications, protection and detection systems. It is anticipated that a sale and purchase agreement will be entered into between ADI and the trustees by the end of June 2018. The board was informed that a total of NIS0.85m (equivalent to approximately £0.17m/$0.24m) of the cash consideration was transferred to the trustees on 10 June 2018 and the balance of NIS6.15m (equivalent to approximately £1.29m/$1.72m) is expected to be paid by ADI to the Trustees within 30 days. Completion of the disposal is expected to occur on the earliest of: (i) 30 days from the court approval of the disposal; and (ii) the date on which the trustees receive the balance of the cash consideration. As previously announced the company ranks behind both the secured creditors and other general creditors and therefore the expectation of the board was that it would be extremely unlikely that any value would be returned to the company from its debts and shareholding in SerVision. The cash consideration that was agreed to be paid by ADI is less than the amounts owed to the company's secured creditors and other general creditors and therefore, unfortunately, the board confirms that the company will receive no value or consideration from the proposed sale of SerVision to ADI. For the year ended 31 December 2016, SerVision recorded an audited loss before tax of $2.62m on revenues of $1.63m. As at 30 June 2017 the unaudited net assets of SerVision were $3,814. Story provided by StockMarketWire.com

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