The private equity firm's representatives were in Israel last week to visit the pill camera developer's headquarters.
27 January 13 17:44, Shiri Habib-Valdhorn
Sources inform "Globes" that representatives of private equity firm Permira Fund visited the offices of Given Imaging Ltd. (Nasdaq: GIVN; TASE: GIVN) in Yokne'am last week as part of efforts by IDB Holding Corp. Ltd. (TASE:IDBH), controlled by Nochi Dankner, to sell the company. Permira Fund is probably not the only international investor interested in buying control of Given Imaging.
Since Given Imaging reported that it had stopped the process of selling the company, its share price has fallen 12.6%, giving the company a market cap of $493 million. The controlling core is worth $227 million but the sellers would expect a premium of tens of percentage points on this amount.
In the past, Dankner saw Given Imaging as having potential annual revenue of $1 billion. In 2012 sales totaled $190 million.
A private equity firm sounds like the most reasonable potential buyer for Given Imaging in the present situation. Until two weeks ago the company was for sale as a single unit and potential buyers were major healthcare and medical device companies that saw Given Imaging as a source of growth. From the moment that only the controlling core was for sale and not the entire company, the likelihood rose that any buyer would be a financial body which will try to grow the value of Given Imaging, and in the future realize its holding at a premium.