Rosh HaAyin, Israel March 29, 2016. Pointer Telocation Ltd. (Nasdaq Capital Market: PNTR) – a leading developer, manufacturer and operator of Mobile Resource Management (MRM), announced today that the Tel Aviv Stock Exchange (TASE) has approved the listing of the ordinary shares of Pointer and trading is expected to begin on or about April 4, 2016 under the ticker symbol PNTR. No new shares are to be issued in connection with the admission to trading on the TASE. Pointer’s shares will continue to remain listed on the Nasdaq Capital Market, subject to the rules and regulations of the Nasdaq Capital Market applicable to listed companies.
The dual listing is a required step as part of Pointer’s previously announced re-organization, which includes the planned distribution to Pointer shareholders, as a dividend in kind, of its shares in its subsidiary, Shagrir Group Vehicle Services Ltd. ("Shagrir"). The distribution of the Shagrir shares is expected to take place after the Shagrir shares are registered for trade on the TASE, which is anticipated in May 2016. Pointer will issue a further press release once the record date for the distribution has been determined.
Once distributed, the Shagrir shares will be listed only on the Tel Aviv Stock Exchange. As a result, only those Pointer shareholders that hold Pointer shares in either an Israeli account, or in a foreign account which is able to take delivery of TASE-only listed shares will be able to receive the Shagrir shares upon their distribution. All other Shagrir shares will be held in an escrow account pending proper delivery and settlement instructions. Settlement and delivery instructions, along with a description of withholding taxes (where applicable), will be sent to shareholders prior to the record date.
“I am very pleased that our shares have been approved for listing on the TASE and that our Board of Directors has approved the distribution of the Shagrir shares to our shareholders. This distribution will provide our shareholders with ownership in two focused companies, enabling the opportunity to value our roadside assistance and mobile resource management businesses independently. We believe this distribution will create long-term shareholder value,” said David Mahlab, chief executive officer of Pointer.
You can find the complete release here.