Danny Goldstein Regains Formula Control After Lucrative Share Deal

Danny Goldstein who sold control of Formula, Israel's largest software company, in August 2001, has regained control of the firm after deals that left him with an additional 6.3 percent of Formula's shares along with $10 million in cash, together worth NIS 83 million.

Yisskal, part of a corporate group controlled by Rafi Peled and Arye Givoni, announced yesterday that the deal to buy Goldstein's controlling stake had been canceled. According to the announcement, Yisskal will receive 3.5 percent of Formula for $25 million already paid to Goldstein. This deal values the company at $715 million, while Formula currently trades at around $122 million.

Goldstein now holds 22.5 percent of Formula's shares, having bought 9.7 percent recently from the Shamrock investment company for $13.5 million, and an additional $1.5 million of shares through the exchange.

Goldstein is now the controlling shareholder of the company, and signed an understanding on a voting agreement with Yisskal which holds 13.5 percent of Formula. The voting arrangement only comes into place if Yisskal increases its stake in the company to 22.5 percent within nine months. In order to reach this, though, Yisskal must make a formal offer for at least 5 percent of the shares, as laid down by the Companies Law.