Defense co Ashot surges on armored vehicle systems deal

Globes - The contract is worth nearly NIS 300 million over three years.

Israel Military Industries Ltd. (IMI) subsidiary Ashot Ashkelon Industries Ltd. (TASE: ASHO) has signed a three-year contract with the Ministry of Defense for the manufacture and delivery of systems for armored fighting vehicles.

The contract is worth NIS 85 million in the first stage, with an option to expand it to NIS 285 million over three years. Deliveries will be made over five years from the date the contract is signed, which is still subject to approval by the Ministry of Defense, which controls the company.

Ashot Ashkelon's share rose 36.7% to NIS 4.53, on turnover of over NIS 10 million. Its shares have jumped 430% in 2009.