RADA to be first Israeli defense co with US owners

Published date21 June 2022
Publication titleGlobes (Rishon LeZion, Israel)
DBSI led a streamlining plan and added value to the company together with Dov Sella who joined as RADA CEO. In six years, RADA's share price has risen more than 2,500% and over the years DBSI sold shares for $80 million. One year ago DBSI ceased to be a party of interest in RADA when its stake fell below 4%, which was worth $23 million before today's merger was reported. In other words DBSI has earned seven-fold returns on its investment

As of the end of March 2022, RADA's largest shareholders were institutional investors: Israel Phoenix Assurance Ltd. (TASE:PHOE1; PHOE5) held a 8.6% stake, Wellington Management (6.7%) and Franklin Templeton (6%).

Even though DBSI is no longer the controlling shareholder, Ben-Shalom remains chairman of RADA and has been very active. Speaking about the possibility that RADA might be sold, Ben-Shalom recently told "Globes," "RADA is a company that is doing well, is operating in flourishing markets, especially during current times, and beyond that anybody can think what they want."

Speaking to "Globes" today, RADA CEO Dov Sella explained the rationale behind the merger. "Two years ago we understood that our market is growing fast and that sooner or later we would need to strengthen because there would be major competition and we are still small and we began a process with investment bank Evercore back when Covid began. If you would have asked me before who would have been the most logical company for us to connect up with, I would have said Leonardo. We have been working with them for years and they6 are our biggest customer. This merger will be a win-win. We have to take advantage of the momentum in Europe and the world's defense market in which we are a leading player."

On the defense market today in the shadow of the war in Ukraine and increased defense budgets in Europe, Sella said, "And so we are saying that this move is also super-strategic from this angle. In America they have gone in strong and with Leonardo we will be stronger. It begins with Europe where Leonardo Italy has a foothold in Germany, France and Poland. They see our presence in Israel as a big advantage. We are looking globally exactly in these...

To continue reading

Request your trial

VLEX uses login cookies to provide you with a better browsing experience. If you click on 'Accept' or continue browsing this site we consider that you accept our cookie policy. ACCEPT