Emet Computing reported that the Company’s Board of Directors has made a decision to examine the splitting of the Company’s operations (through a splitting prospectus and listing on the Tel Aviv Stock Exchange), in which the Company will transfer the OEM business to a sister company, whose shares are held by a trustee. EMT Computing.
Near the date of the decision, the company intends to submit a draft of the prospectus to the Securities Authority and the Tel Aviv Stock Exchange.
The company’s board of directors believes that the split is a strategic move required due to the different nature of each area of activity. The move is also expected to help the company explore strategic collaborations.
The move will allow the remaining IT activities in the company to focus on growth engines, including software, cloud and information security activities and deepen its activities in the target markets, while improving activity, cash flow and other financial indices. In the OEM activity, the move will enable management to focus, accelerate growth in overseas markets, create strategic collaborations and position itself as a market leader and as a company in groundbreaking technological growth.
Completion of the split is subject to the approvals required by law, including, a final decision of the Company’s Board of Directors as well as obtaining approval from the Tax Authority, permit from the Securities Authority and approval from the Stock Exchange for listing of securities of a sister company.
Yoav Weinberg, CEO of Emet Computing: The purpose of the split procedure is to increase the business focus in each of the activities while promoting the main goals in the core areas. By creating two leading companies in their field, you can each focus on target markets and growth engines as well as work to promote strategic collaborations. All of these will help accelerate the growth of companies while flooding shareholders with value. “
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