Viola Private Equity will be selling its stake in Amiad Water Systems Ltd. The Kibbutz Amiad-based filtration technology provider was the only Kibbutz company listed on London's Alternative Investment Market (AIM), Israeli news website Globes said.
The private quity firm owns 19.5% of Amiad Water, which has a market cap of GBP63 million. With a stake worth GBP12 million (USD 20 million), Viola Private Equity is currently the company's second biggest shareholder.
Amiad Water predicted a net profit of USD4 million to USD6 million on USD115 million to USD120 million revenue for this year. This would be a steep decline from last year's net profit of USD8.1 million on USD130.8 million in revenue.
In 2009, Viola Private Equity bought Atorka Group's stake in Amiad Waters, paying the Icelandic investment company GBP1.40 per share.
Amiad Water's closing price last week was at GBP2.82 per share. The doubling of the share price may be sufficient basis for Viola to sell the stake, Globes said.
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