Elbit Systems, through its subsidiary IMI, has proposed a cash tender offer to acquire all publicly-held shares of Ashot Ashkelon Industries to consolidate its ownership and enhance operational synergies.

Target Company Overview

Elbit Systems Ltd. announced on April 7, 2020, that its fully owned Israeli subsidiary, IMI Systems Ltd. ("IMI"), has initiated a conditional full cash tender offer to acquire all publicly-held ordinary shares of Ashot Ashkelon Industries Ltd. ("Ashot"), which currently represents approximately 15.02% of Ashot's total outstanding share capital. IMI currently holds about 84.98% of the shares in Ashot, indicating a strong strategic interest in fully consolidating this key asset.

Industry Overview in Israel

Israel's defense industry is a globally recognized sector, characterized by innovation and advanced technology. The country's unique geopolitical situation has spurred significant investment in defense technologies, leading to a robust industry that supports both domestic needs and international exports. Major domestic players like Elbit Systems, Rafael, and Israel Aerospace Industries dominate the landscape, focusing on cutting-edge solutions in areas such as unmanned systems, cyber defense, and electronic warfare.

The Israeli defense market is further supported by government policies that prioritize defense spending and foster industry growth. Annual defense budgets often exceed $20 billion, with an emphasis on maintaining state-of-t