Formula to sell shares in Magic offering

Israel's Formula Systems Ltd (NasdaqNM:FORTY - news) said on Sunday it will sell one-third of the two million shares being offered by its Magic Software Enterprises (NasdaqNM:MGIC - news) subsidiary.

On Thursday, Magic said it filed a registration statement with the U.S. Securities and Exchange Commission for an offering of two million ordinary shares.

Formula said the offering was valued at $150 million at current prices.

Magic will offer 1.33 million shares, while Formula will offer 666,666.

Formula said it could not estimate at this time the capital gains it will realise from the sale.

Last month Formula said Magic was considering a share offering so that it could acquire six or seven more companies.

Formula's shares were up more than 3.5 percent to 235 shekels in Sunday trading in Tel Aviv. Its Nasdaq-traded shares closed more than $1 lower on Friday at $57-9/16.

Magic's shares slipped more than $6 to $82-1/4. ($1=4.10 shekels)