Sunday August 12, 5:56 am Eastern Time

Formula to list unit with Romtec takeover

JERUSALEM, Aug 12 (Reuters) - Israeli software firm Formula Systems said on Sunday its wholly-owned subsidiary ForSoft will list on the Tel Aviv Stock Exchange, through a takeover of Israel's Romtec .

In a statement, Formula said it will transfer to Romtec all the issued and outstanding shares in ForSoft held by Formula, while Romtec will issue ordinary shares to Formula so that Formula will own 85 percent of Romtec.

In turn Romtec's principal shareholders are to get Romtec cash and cash equivalents totalling $8 million.

Formula said it also agreed to provide an $8.34 million loan to support Romtec's principal shareholders.

Formula did not immediately provide any further details.

The deal is subject to the approval of the Israeli securities and Tel Aviv Stock Exchange regulators.

Romtec's shares were up 13.8 percent in midday trading in Tel Aviv, while shares of Formula were 1.2 percent lower.