ECI Telecom to List on London Stock Exchange
The company wants to raise 130 million pounds according to a company valuation of around 500 million pounds, one person familiar with the matter said
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Barclays PLC and UBS Group AG are the bookrunners, the person said, adding that ECI has also contracted a British law firm to prepare the prospectus.
ECI's Israeli headquarters. Photo: Amit Sha'al
ECI's owner, Israeli businessman Shaul Shani, intends to list the company within the next 12 months, the one person familiar with the matter.
A spokesperson for ECI said the company does not comment on rumors.
A Barclays spokesman declined to comment.
UBS has been approached for comment but has yet to respond.
Israel-based telecommunications equipment supplier, ECI was considered an industry leader in the 1990s, employing around 6,000 people and with a market capitalization of around $4 billion at its peak. Dwindling revenues led the company to sell or spin off some of its subsidiaries over the years. In 2007, a takeover bid saw private equity firm Ashmore Investment Management Ltd. pay $1.23 billion for a 90% stake in the company, while Shani acquired the remaining 10%. In 2014, Shani bought Ashmore's stake.
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In December 2017 the company announced it will let go 100 of its Israeli employees, citing the pressures of global competition, a decline in governmental support, and the strong Israeli currency as the reasons for the decision. The announcement led to employee demonstrations in front of Shani's home.
A Calcalist report from January 2018 estimated the company's revenues for 2017 at $380 million, based on two persons familiar with the details who spoke on conditions of anonymity.
