Shareholders of Gilat approve merger plan

Jul 04, 2008 (M2 EQUITYBITES via COMTEX) -- GILT | Quote | Chart | News | PowerRating -- Gilat Satellite Networks Ltd (Nasdaq:GILT) (TASE:GILT), a provider of products and services for satellite-based communications networks, announced on Thursday (3 July) that the shareholders of the company have approved the agreement and plan merger among Gilat, Galactic Holdings Ltd and Galactic Acquisition Company Ltd.

Under the merger agreement, Galactic Acquisition Company Ltd will be merged into Gilat.

Gilat will continue as the surviving entity and will become a wholly-owned subsidiary of Galactic Holdings Ltd.

Approximately 61% of the shares entitled to vote were represented and and 99% of such shares voted to approve the agreement and plan of merger.

The merger transaction is subject to regulatory clearance from the US Federal Communications Commission and the Committee on Foreign Investment in the US, and certain other closing conditions.

The parties involved in the transaction have received the necessary antitrust clearances and Gilat has obtained a tax pre-ruling from the Israeli Tax Authority related to withholding taxes.

Gilat said that the company does not expect delays in receiving the required regulatory approvals and anticipates that the closing of the merger will take place promptly after they are obtained, and no later than 28 September 2008.

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