Frost & Sullivan Publishes Update Coverage Report on Vonetize Plc: A Non-binding Memorandum of Understanding for the Purchase of 10% of Vonetize has been Signed at a Value of NIS 174 million; Price Target Unchanged at NIS 1.33.

TEL AVIV, Israel, March 15, 2018 /CNW/ -- TASE analysis project was launched in 2016 in order to raise the investors' level of knowledge of TASE listed technology and life-science companies and the markets in which the companies operate, thus creating appropriate pricing and increasing the exposure of investors from Israel and abroad. Its goal is to encourage investments in these companies by removing the barrier of lacking understanding in the market.

In order to maintain professional, independent and unbiased analysis, the companies signed an agreement with the TASE to receive the analysis services for an obligatory period of two years. The companies cannot withdraw from the project during this period. The analysis is funded by the companies surveyed with funding from the Chief Scientist and the TASE.

Summary of Highlights

• On March 7, the Company announced that the main shareholders had notified the Company that they received a proposal and a memorandum of principles signed by an American film studio based in Los Angeles, pursuant to which the Purchaser wishes to join the controlling group of the Company and to acquire full control in the future by purchasing shares from the controlling shareholders of the Company.
• In the first stage, upon signing a binding agreement, 3.5 million shares will be purchased at a cash consideration of $1.41 per share (approx. NIS 4.89), reflecting a valuation of $50.2M (approx. NIS 174M).
• The acquisition of 10% of the Company's issued share capital is at a value of 3.2 times the Company's price on the last trading day. This is another reflection of the attractiveness of Vonetize's product leading firms in the industry.
• The main shareholders made it clear that this is a non-binding memorandum of understanding, and that there is no certainty that a detailed agreement will be signed between the parties.
• In the second stage, the sale of the remaining shares of the controlling shareholders to the purchaser will be subject to the existence of a number of events that may last 12 months from the Company's notice.
• Thus, we estimate the value of the company at NIS 49.6M  ($14.4M), corresponding to a target price ranging between NIS 1.27 ($0.37) and NIS 1.40 ($0.41); an average of NIS 1.33.
• Since the company currently has a non-binding memorandum of understanding, we do not change our assessment of the Company for the time being. In addition, it is our understanding of the value that reflects a synergy for the acquiring company, whether in existing agreements with the various studios or whether the existing technology in the acquiring company can benefit it, unlike with other investors in the capital market.

About the company - Vonetize Plc ("Vonetize"), an Israeli-headquartered company, offers Video-on-Demand (VOD), Over-The-Top (OTT) content services, technology platforms as fully-managed services for set-top boxes, smart phones, smart TVs and other Internet-connected devices.  The company offers multi-screen end-to-end video content solutions, including; premium content from Hollywood studios, cloud-based digital video delivery of live VOD content, content management systems, billing, CRM, and marketing/business intelligence (BI) analysis systems. The company is active in Israel, Latin America, Africa, and the UK. Vonetize has been listed on the Tel Aviv Stock Exchange since July 2016. It was established and incorporated in Cyprus as Pixelate T.V. Ltd. in April 2011, and rebranded in February 2016. Please click here (https://ww2.frost.com/research/equity-research/)

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SOURCE Frost & Sullivan