UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
SCHEDULE 13D/A
Under the Securities Exchange Act of 1934
(Amendment No. 3)
Formula Systems (1985) Ltd.
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(Name of Issuer)
Ordinary Shares
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(Title of Class of Securities)
346414 105
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(CUSIP Number)
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Gillon Beck Dan Goldstein Adam M. Klein, Adv.
FIMGold, Limited Partnership Formula Systems (1985) Ltd. Goldfarb, Levy, Eran & Co.
c/o FIMI 2001 Ltd. 3 Abba Eban Boulevard Europe Israel Tower
"Rubinstein House" Herzlia, Israel 2 Weizmann Street
37 Petach Tikva Road +972-9-959-8800 Tel Aviv, Israel
Tel Aviv, Israel +972-3-608-9999
+972-3-565-2244
----------------------------------------- -------------------------------------
(Name, Address and Telephone Number of Person Authorized to
Receive Notices and Communications)
March 3, 2005
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(Date of Event which Requires Filing of this Statement)
If the filing person has previously filed a statement on Schedule 13G
to report the acquisition that is the subject of this Schedule 13D, and
is filing this schedule because of ss.ss.240.13d-1(e), 240.13d-1(f) or
249.13d-1(g), check the following box. |_|
The information required on the remainder of this cover page shall not
be deemed to be "filed" for the purpose of Section 18 of the Securities
Exchange Act of 1934 ("Act") or otherwise subject to the liabilities of
that section of the Act but shall be subject to all other provisions of
the Act (however, see the Notes).
CUSIP NO. 364414 105
---------- ---------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
Dan Goldstein
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2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) x
(b)
---------- ---------------- ----------------------------------------------------
3. SEC Use only
---------- ----------------------------------- ---------------------------------
4. Source of funds (See Instructions) PF
---------- ----------------------------------- ---------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e)
---------- -------------------------------------- ------------------------------
6. Citizenship or Place of Organization Israel
----------------- ----- -------------------- -----------------------------------
Number of 7. Sole Voting Power 0
Shares
Beneficially 8. Shared Voting Power 4,400,000
Owned by Each
Reporting 9. Sole Dispositive Power 0
Person With:
10. Shared Dispositive Power 4,400,000
----------------- ----- -------------------- -----------------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
4,400,000
---------- ------------------------------------------------------------------ --
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions) 12.
---------- ------------------------------------------------------ --------------
13. Percent of Class Represented by Amount in Row (11) 33.3%
---------- ---------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
IN
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CUSIP NO. 364414 105
---------- ---------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
Ildani Holdings Ltd.
---------- ---------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) x
(b)
---------- ---------------- ----------------------------------------------------
3. SEC Use only
---------- ----------------------------------- ---------------------------------
4. Source of funds (See Instructions) AF
---------- ----------------------------------- ---------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e)
---------- -------------------------------------- ------------------------------
6. Citizenship or Place of Organization Israel
----------------- ----- -------------------- -----------------------------------
Number of 7. Sole Voting Power 0
Shares
Beneficially 8. Shared Voting Power 4,400,000
Owned by Each
Reporting 9. Sole Dispositive Power 0
Person With:
10. Shared Dispositive Power 4,400,000
----------------- ----- ---------------------------- ---------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
4,400,000
---------- ------------------------------------------------------------------ --
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
---------- ------------------------------------------------------------------ --
13. Percent of Class Represented by Amount in Row (11) 33.3%
---------- ------------------------------------------------------ --------------
14. Type of Reporting Person (See Instructions)
CO
--------------------------------------------------------------------------------
CUSIP NO. 364414 105
---------- ---------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
FIMI Opportunity Fund, L.P.
---------- ---------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) x
(b)
---------- ---------------- ----------------------------------------------------
3. SEC Use only
---------- ----------------------------------- ---------------------------------
4. Source of funds (See Instructions) AF
---------- ----------------------------------- ---------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e)
---------- -------------------------------------- ------------------------------
6. Citizenship or Place of Organization Delaware
----------------- ----- -------------------- -----------------------------------
Number of 7. Sole Voting Power 0
Shares
Beneficially 8. Shared Voting Power 4,400,000
Owned by Each
Reporting 9. Sole Dispositive Power 0
Person With:
10. Shared Dispositive Power 4,400,000
----------------- ----- ---------------------------- ---------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
4,400,000
---------- ------------------------------------------------------------------ --
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
---------- ------------------------------------------------------------------ --
13. Percent of Class Represented by Amount in Row (11) 33.3%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
PN
CUSIP NO. 364414 105
---------- ---------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
FIMI 2001 Ltd.
---------- ---------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) x
(b)
---------- ---------------- ----------------------------------------------------
3. SEC Use only
---------- ----------------------------------- ---------------------------------
4. Source of funds (See Instructions) N/A
---------- ----------------------------------- ---------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e)
---------- -------------------------------------- ------------------------------
6. Citizenship or Place of Organization Israel
----------------- ----- -------------------- -----------------------------------
Number of 7. Sole Voting Power 0
Shares
Beneficially 8. Shared Voting Power 4,400,000
Owned by Each
Reporting 9. Sole Dispositive Power 0
Person With:
10. Shared Dispositive Power 4,400,000
----------------- ----- ---------------------------- ---------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
4,400,000
---------- ------------------------------------------------------------------ --
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
---------- ------------------------------------------------------------------ --
13. Percent of Class Represented by Amount in Row (11) 33.3%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
CO
CUSIP NO. 364414 105
---------- ---------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
FIMGold, Limited Partnership
---------- ---------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) x
(b)
---------- ---------------- ----------------------------------------------------
3. SEC Use only
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4. Source of funds (See Instructions) AF, BK
---------- ----------------------------------- ---------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e)
---------- -------------------------------------- ------------------------------
6. Citizenship or Place of Organization Israel
----------------- ----- -------------------- -----------------------------------
Number of 7. Sole Voting Power 0
Shares
Beneficially 8. Shared Voting Power 4,400,000
Owned by Each
Reporting 9. Sole Dispositive Power 0
Person With:
10. Shared Dispositive Power 4,400,000
----------------- ----- ---------------------------- ---------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
4,400,000
---------- ------------------------------------------------------------------ --
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
---------- ------------------------------------------------------------------ --
13. Percent of Class Represented by Amount in Row (11) 33.3%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
PN
CUSIP NO. 364414 105
---------- ---------------------------------------------------------------------
1. Names of Reporting Persons.
I.R.S. Identification Nos. of above persons (entities only)
FIMGold Ltd.
---------- ---------------------------------------------------------------------
2. Check the Appropriate Box if a Member of a Group (See Instructions)
(a) x
(b)
---------- ---------------- ----------------------------------------------------
3. SEC Use only
---------- ----------------------------------- ---------------------------------
4. Source of funds (See Instructions) AF
---------- ----------------------------------- ---------------------------------
5. Check if disclosure of Legal Proceedings Is Required Pursuant to
Items 2(d) or 2(e)
---------- -------------------------------------- ------------------------------
6. Citizenship or Place of Organization Israel
----------------- ----- -------------------- -----------------------------------
Number of 7. Sole Voting Power 0
Shares
Beneficially 8. Shared Voting Power 4,400,000
Owned by Each
Reporting 9. Sole Dispositive Power 0
Person With:
10. Shared Dispositive Power 4,400,000
----------------- ----- ---------------------------- ---------------------------
11. Aggregate Amount Beneficially Owned by Each Reporting Person
4,400,000
---------- ------------------------------------------------------------------ --
12. Check if the Aggregate Amount in Row (11) Excludes Certain Shares
(See Instructions)
---------- ------------------------------------------------------------------ --
13. Percent of Class Represented by Amount in Row (11) 33.3%
--------------------------------------------------------------------------------
14. Type of Reporting Person (See Instructions)
CO
Explanatory note: This Schedule 13D constitutes amendment no. 3 to the Schedule
13D filed by Dan Goldstein and the initial filing of the other Reporting
Persons. This Schedule 13D amends and restates the Schedule 13D of Dan Goldstein
in its entirety.
Item 1. Security and Issuer.
------ -------------------
This Schedule 13D relates to the Ordinary Shares, par value NIS 1.00
per share (the "Shares"), of Formula Systems (1985) Ltd., an Israeli company
(the "Company"). The Company's principal executive offices are located at 3 Abba
Eban Boulevard, Herzlia 46725, Israel.
Item 2. Identity and Background.
------ -----------------------
This Schedule 13D is filed jointly by the following persons (each, a
"Reporting Person", and collectively, the "Reporting Person"):
1. Dan Goldstein, an Israeli citizen ("Mr. Goldstein"). Mr. Goldstein is the
Chairman of the Board and Chief Executive Officer of the Company.
His business address is c/o Formula Systems (1985) Ltd., 3 Abba Eban
Boulevard, Herzlia 46725, Israel.
2. Ildani Holdings Ltd., an Israeli holding company wholly owned by Mr.
Goldstein ("Ildani"). Its principal office is located at c/o Formula
Systems (1985) Ltd., 3 Abba Eban Boulevard, Herzlia 46725, Israel. Mr.
Goldstein is also the sole director and officer of Ildani.
3. FIMI Opportunity Fund, L.P., a Delaware limited partnership ("FIMI"), is an
investment fund. Its principal office is located at c/o FIMI 2001 Ltd.,
"Rubinstein House", 37 Petach Tikva Road, Tel Aviv, Israel.
4. FIMI 2001 Ltd., an Israeli company, is the managing general partner of FIMI.
Its principal office is located at "Rubinstein House", 37 Petach Tikva Road,
Tel Aviv, Israel.
5. FIMGold, Limited Partnership, an Israeli limited partnership ("FIMGold LP").
Its principal office is located at c/o FIMI 2001 Ltd., "Rubinstein House",
37 Petach Tikva Road, Tel Aviv, Israel.
6. FIMGold Ltd., an Israeli company, which is owned 50% by each of Ildani and
FIMI. FIMGold Ltd. is the general partner of FIMGold LP.
The name, business or residential address, citizenship, principal
occupation or employment and name, address and principal business of the
employer of each controlling person, executive officer and director of each of
FIMI 2001 Ltd. and FIMGold Ltd. are set forth in Appendix A and Appendix B
hereto, respectively.
During the last five years, none of the Reporting Persons, nor any of
the persons listed in Appendix A or B hereto, has been convicted in any criminal
proceeding.
During the last five years, none of the Reporting Persons, nor any of
the persons listed in Appendix A or B hereto, was a party to a civil proceeding
of a judicial or administrative body of competent jurisdiction and as a result
of such proceeding was or is subject to a judgment, decree or final order
enjoining future violations of, or prohibiting or mandating activities subject
to, federal or state securities laws or finding any violation with respect to
such laws.
Item 3. Source and Amount of Funds or Other Consideration.
------ -------------------------------------------------
On March 3, 2005, the Company issued and sold to FIMGold LP 2,400,000
Shares in a private placement for an aggregate purchase price of $36,000,000.
Concurrently with the closing of the private placement, Mr. Goldstein sold all
of his 2,000,000 Shares to FIMGold LP for an aggregate purchase price of
$30,000,000. The purchase price per share of the Shares was $15.00, which was
the approximate closing price per share of the Shares on the NASDAQ National
Market and the Tel Aviv Stock Exchange on December 28, 2004, the date on which
an agreement in principal was reached. In addition, Mr. Goldstein concurrently
sold to FIMGold LP all of his 15,500,000 ordinary shares in Formula Vision
Technologies (F.V.T.) Ltd. (the "FVT Shares"), a subsidiary of the Company
traded on the Tel Aviv Stock Exchange, for an aggregate purchase price of
$17,000,000.
FIMGold LP financed such purchases of Shares as follows: (i) capital
contributions in the aggregate amount of $17,000,000 by Ildani; (ii) capital
contributions by affiliates of FIMI in the aggregate amount of $17,000,000; and
(iii) a loan in the amount of $49,000,000 from Israel Discount Bank Ltd. (the
"Bank"). Of such loan amount, (i) $8,000,000 bears interest at LIBOR plus 2.5%
per year and matures after one year and (ii) $41,000,000 bears interest at LIBOR
plus 2.3% per year and matures as follows: $13,000,000 after four years and
$28,000,000 after five years.
As collateral for the loan, the Bank received, among other things, a
first-priority pledge on 3,400,000 Shares and 12,000,000 FVT Shares held by
FIMGold LP and a first-priority security interest in a bank account of FIMGold
LP that contains, among other things, an additional 1,000,000 Shares and
3,500,000 FVT Shares.
In connection with the loan, FIMGold LP granted the Bank an option to
purchase up to 70,000 Shares at a price of $20.00 per share and an option to
purchase up to 250,000 FVT Shares at a price of $1.097 per share. The options
are exercisable until the earlier to occur of (i) the fifth anniversary of the
closing date and (ii) the date on which all the Shares and FVT Shares purchased
by FIMGold LP on the closing date are sold.
Item 4. Purpose of Transaction.
------ ----------------------
FIMGold LP acquired the Shares for investment purposes and intends to
review its investment on a continual basis and take such actions as it deems
appropriate in light of the circumstances existing from time to time. Such
actions could include, among other things, either acquiring or disposing of the
Shares, in whole or in part, at any time, subject to applicable laws. Any such
decision would be based on an assessment of a number of different factors,
including, without limitation, the business, prospects and affairs of the
Company, the market for the Shares, the condition of the securities markets, the
economic and political environment in Israel, general economic and industry
conditions and other opportunities available to or matters affecting the
Reporting Persons. Subject to applicable law, FIMGold LP plans to cause the
Company to adopt a dividend policy to distribute annual cash dividends.
Except as aforesaid, the Reporting Persons have no plans or proposals
of the type described in paragraphs (a) through (j) of Item 4 of the Schedule
13D rules.
Item 5. Interest in Securities of the Issuer.
------ ------------------------------------
(a) - (b) FIMGold holds 4,400,000 Shares, which constitutes
approximately 33.3% of the outstanding Shares, based on 13,200,000 outstanding
Shares as of March 4, 2005. Each of the Reporting Persons may be deemed to
beneficially own all such shares by virtue of shared voting and dispositive
power pursuant to the Shareholders Agreement described in Item 6 below. However,
Mr. Goldstein, Ildani, FIMI and FIMI 2001 Ltd. disclaim beneficial ownership
from one-half of such Shares.
(c) Except for the transactions described in Item 3 above, there were
no transactions in the Shares effected during the past 60 days by any of the
Reporting Persons.
(d) Not applicable.
(e) Not applicable.
Item 6. Contracts, Arrangements, Understandings or Relationships
With Respect to Securities of the Issuer.
------ --------------------------------------------------------------
In connection with the transactions described in Item 3 above, FIMI and
Ildani entered into a Shareholders Agreement with respect to FIMGold Ltd., the
general partner of FIMGold LP (the "Shareholders Agreement"). Pursuant to the
Shareholders Agreement, each party has the right to designate one-half of the
members of the board of directors of FIMGold Ltd. and each resolution of the
board of directors requires the approval of at least one member designated by
each party, including resolutions relating to selling, acquiring and voting
Shares held by FIMGold LP. Notwithstanding the foregoing, the Shareholders
Agreement provides that each party has the right to cause the sale of up to an
aggregate of 20% of the Shares held by FIMGold LP without the consent of the
other party. Pursuant to the Shareholders Agreement, the Shares held by FIMGold
LP will be voted for the election of two nominees of each party to the board of
directors of the Company. In addition, the Company granted registration rights
to FIMGold LP in respect of its Shares, on customary terms and conditions.
Item 7. Materials to be Filed as Exhibits.
------ ---------------------------------
1. Shareholders Agreement of FIMGold Ltd., dated as of February 16,
2005, between FIMI and Ildani.
2. Summary of the main terms of the loans granted to FIMGold LP by
Israel Discount Bank Ltd. pursuant to Hebrew agreements, dated
March 3, 2005, between FIMGold LP and Israel Discount Bank Ltd.
3. Joint filing agreement.
SIGNATURES
After reasonable inquiry and to the best of our knowledge and
belief, each of the signatories with respect to itself certify that the
information set forth in this statement is true, complete and correct.
Date: March 28, 2005
FIMGOLD, LIMITED PARTNERSHIP
By: FIMGOLD LTD.
Its General Partner
By: /s/_Ishay Davidi
-----------------
Ishay Davidi
Director
By: /s/_Dan Goldstein
------------------
Dan Goldstein
Director
FIMI OPPORTUNITY FUND, L.P.
By: FIMI 2001 LTD.
Its General Partner
By: /s/_Ishay Davidi
----------------
Ishay Davidi
Chief Executive Officer
FIMI 2001 LTD.
By: /s/_Ishay Davidi
---------------------
Ishay Davidi
Chief Executive Officer
ILDANI HOLDINGS LTD.
By: /s/_Dan Goldstein
--------------------
Dan Goldstein
Chief Executive Officer
By: /s/_Dan Goldstein
---------------------
Dan Goldstein
APPENDIX A
Directors and Executive Officers of FIMI 2001 Ltd. The name, business or
residence address, principal occupation and name, address and business of
employer of each controlling shareholder, executive officer and director of FIMI
2001 Ltd. are set forth below. Unless otherwise noted, the business address of
each is c/o FIMI 2001 Ltd., "Rubinstein House", 37 Petach Tikva Road, Tel Aviv,
Israel.
--------------------------- --------------------- ------------------------- ---------------------------------------------------
Name & Address Citizenship Position with FIMI Current Principal Occupation
2001 Ltd.
--------------------------- --------------------- ------------------------- ---------------------------------------------------
Alex Berman U.S. Director Associate Director, Babson Capital Management
LLC, an entrepreneurial capital management firm,
a subsidiary of Massachusetts Mutual Life
Insurance Company.
Address:
One Memorial Drive
Cambridge, MA 02142
--------------------------- --------------------- ------------------------- ---------------------------------------------------
Marshal Butler U.S. Director Private Investor.
Address: 900 Third Avenue 33rd floor
New York, NY 10022
--------------------------- --------------------- ------------------------- ---------------------------------------------------
Ishay Davidi* Israeli Chief Executive Chief Executive Officer and Director in (i) First
Officer and Director Israel Mezzanine Investors Ltd., the Managing
General Partner of the Mezzanine Fund, and in
(ii) FIMI 2001 Ltd., the Managing General Partner
of the FIMI Opportunity Fund
--------------------------- --------------------- ------------------------- ---------------------------------------------------
Amnon Goldsmidt Israeli Director Senior Executive Vice President in Israel
Discount Bank Ltd.
--------------------------- --------------------- ------------------------- ---------------------------------------------------
Robert Joyal U.S. Director Retired. Former President, Babson Capital
Management LLC.
Address:
One Memorial Drive
Cambridge, MA 02142
--------------------------- --------------------- ------------------------- ---------------------------------------------------
Gillon Beck Israeli Senior Partner Senior Partner in FIMI 2001 Ltd.
--------------------------- --------------------- ------------------------- ---------------------------------------------------
Yarom Oren Israeli Senior Partner Senior Partner in FIMI 2001 Ltd.
--------------------------- --------------------- ------------------------- ---------------------------------------------------
Chelly Pardo Israeli Partner in charge of Partner in charge of Investors Relations of FIMI
Investors Relations 2001 Ltd.
--------------------------- --------------------- ------------------------- ---------------------------------------------------
*Mr. Davidi indirectly owns more than 50% of the outstanding capital of FIMI
2001 Ltd. He is also the Chief Executive Officer, a director, and a
shareholder of First Israel Mezzanine Investors Ltd., which serves as the
managing partner of The Israel Mezzanine Fund, L.P. and The Israel Mezzanine
Fund (In Israel) Limited Partnership (collectively with The Jordan (Bermuda)
Investment Company Ltd., the "Fund"). The Fund, together with the Bank, holds
a convertible debenture of the Company in the principal amount of
approximately $4.7 million, which is convertible into 248,450 Shares. Mr.
Davidi disclaims beneficial ownership of the Shares beneficially owned by FIMI
2001 Ltd. and by the Fund.
APPENDIX B
Directors and Executive Officers of FIMGold Ltd.
The name, business or residence address, principal occupation and name,
address and business of employer of each controlling shareholder, executive
officer and director of FIMGold Ltd. are set forth below. The business address
of each is as set forth elsewhere in this Schedule 13D.
---------------------------------- ------------------ --------------------------- ---------------------------------------------
Name & Address Citizenship Position with Current Principal Occupation
FIMGold Ltd.
---------------------------------- ------------------ --------------------------- ---------------------------------------------
Dan Goldstein Israeli Director Chairman and Chief Executive Officer of the
Company
---------------------------------- ------------------ --------------------------- ---------------------------------------------
Gad Goldstein Israeli Director President of the Company
---------------------------------- ------------------ --------------------------- ---------------------------------------------
Ishay Davidi Israeli Director Chief Executive Officer and Director in
(i) First Israel Mezzanine Investors Ltd.,
the Managing General Partner of the
Mezzanine Fund, and in (ii) FIMI 2001 Ltd.,
the Managing General Partner of the FIMI
Opportunity Fund
---------------------------------- ------------------ --------------------------- ---------------------------------------------
Yarom Oren Israeli Director Partner in First Israel Mezzanine Investors
Ltd. FIMI 2001 Ltd.
---------------------------------- ------------------ --------------------------- ---------------------------------------------