Shares in BATM Advanced Communications Ltd (LSE:BVC) rose 8% on Monday after the Israeli technology group agreed to sell its Romanian diagnostics distribution business, A.M.S. 2000 Trading Impex, for £17.6 million as part of its drive to shed non-core assets.
Under the deal, A.M.S. will be sold to Dr Zvi Marom, a non-executive director and major shareholder, in exchange for his entire 22.2% stake in BATM.
On completion, Marom will step down from the board and cease to be a shareholder.
The sale forms part of BATM’s plan to streamline its operations and focus on its core activities in advanced networking, cybersecurity and diagnostic technologies.
The group has already completed three other disposals this year as it concentrates on higher-margin growth markets such as network encryption and edge computing.
Chief executive Moti Nagar said the sale “marks a significant step in BATM’s strategic execution” and “delivers immediate value to shareholders”. The transaction remains subject to shareholder approval.
The stock rose 1.4p to 19.55p, valuing the business at £85 million.