Digital Power Corporation Announces the Acquisition of 8.8% of Telkoor Telecom
Digital Power Corp. announced that it has acquired 1,136,666 shares of its largest shareholder, Telkoor Telecom Ltd. ("Telkoor"), for $0.88 per share, which represents 8.8% of the outstanding shares of Telkoor.
This transaction was made by Digital Power’s wholly-owned subsidiary, Digital Power Limited. As a result of the transaction, an existing manufacturing agreement between Digital Power and Telkoor will be updated and extended. In addition, subject to the approval of its board of directors, Telkoor intends to consider the appointment of Amos Kohn, President and CEO of Digital Power, to its board of directors, and intends to consider a policy for the payment of dividends to shareholders.
Commenting on the transaction, Amos Kohn, President and CEO of Digital Power Corporation said, "We are pleased to report this acquisition of Telkoor’s shares. This transaction will tighten our existing business relationship and strengthen the synergy between the two companies. It also will secure Digital Power’s access to technologies and products that are developed by Telkoor. This transaction is the first step in Digital Power’s strategic collaboration plan as a leading provider of power solutions for our markets."