The Board of Unitronics (1989) (R"G) Ltd (TASE:UNIT) decided in principle to spin off U-tron on August 19, 2018. Under the terms, the shareholders will get one share in Utron and one share in Unitronics. The two companies' respective shares would be priced on Unitronics closing price the day before the split at a ratio of 52.8% to Utron and 47.2% to Unitronics. Unitronics will convert a $33 million loan Unitronics made to Utron into equity. Post spin-off one company will take over the business in robotic parking garages and the second retaining the other business in industrial automation equipment.

The Spinoff is subject to the legally mandated approvals, including approval of reduction of capital by the court, which is expected to be submitted to the court in the coming days, final decision by Unitronics Board of Directors and approval from the Tax Authority, permit from the Israel Securities Authority and TASE Ltd. approval for registration of the spun-off Unitronics' securities for trading. The deal is expected to close by March 10, 2019.