TEL AVIV, Israel, May 10, 2015 /PRNewswire/ -- Elbit
Imaging Ltd. (TASE, NASDAQ: EMITF) ("Elbit" or the "Company")
announced today that its wholly owned indirect subsidiary entered
into a Share Purchase Agreement with Astrid JV Sarl, an affiliate
of Kohlberg Kravis Roberts & Co. L.P., (the
"Purchaser"), with regard to the sale of its entire (100%)
holdings in its wholly owned subsidiary (the "Target") which
owns and operates the Radisson Blu Hotel and the Park Inn Hotel, in
Antwerp, Belgium (collectively:
the "Hotels"). The closing of the transaction is scheduled
to occur following the satisfaction of certain conditions.
The transaction reflects an asset value of approximately
Euro 48 million for both Hotels
subject to working capital and other adjustments as specified in
the agreement. The total net consideration payable to the Company's
wholly owned subsidiary (the "Seller"), following the
repayments of the Target's banks loan, and the aforementioned
adjustments, is approximately Euro 27
million out of which Euro 1
million will be deposited in escrow to secure the Seller's
indemnification obligations under the Share Purchase Agreement.
In accordance with the refinancing loan agreement between Bank
Hapoalim B.M and the Company, upon closing of the abovementioned
transaction, the Company will prepay an amount of approximately
$5 million on account of the
loan.
JLL advised Seller in the transaction.
Ron Hadassi, Chairman of the Board of Directors of the
Company, commented: "Signing this transaction for the sale of
our hotels in Belgium is the most
significant sale by the Company since the completion
of debt restructuring in February last year. This step
is consistent with the Company's strategic plan to dispose of
assets which have reached maturity and have exhausted their
potential, while developing other assets toward their future
sale."
Doron Moshe, Acting CEO and
CFO of the Company, added: "The sale of the Company's hotels in
Belgium is an important step in
the disposition of the Company's assets that have reached
maturity, with the aim of preparing for repayment of the Company's
debts, which are scheduled to mature in the upcoming years, and
also for the investment in other assets, which have not reached
maturity yet. Upon the closing of the transaction, Elbit's
estimated cash flow on a stand alone basis will increase by
approximately NIS 90 million
and the balance of the Company's loans (consolidated) will be
reduced approximately by NIS 100
million."
About Elbit Imaging Ltd.
Elbit Imaging Ltd. operates in the following principal fields of
business: (i) Commercial and Entertainment Centers - Initiation,
construction and sale of shopping and entertainment centers and
other mixed-use real property projects, predominantly in the retail
sector, located in Central and Eastern
Europe and in India,
primarily through its subsidiary Plaza Centers N.V. In certain
circumstances and depending on market conditions, we operate and
manage commercial and entertainment centers prior to their sale;
(ii) Hotels - Hotel operation and management; (iii) Medical
Industries - (a) research and development, production and marketing
of magnetic resonance imaging guided focused ultrasound treatment
equipment and (b) development of stem cell population expansion
technologies and stem cell therapy products for transplantation and
regenerative medicine; and (iv) Residential Projects - Initiation,
construction and sale of residential projects and other mixed-use
real property projects, predominately residential, located
primarily in India.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
Any forward-looking statements in our releases include
statements regarding the intent, belief or current expectations of
Elbit Imaging Ltd. and our management about our business, financial
condition, results of operations, and its relationship with its
employees and the condition of our properties. Words such as
"believe," "would," "expect," "intend," "estimate" and similar
expressions are intended to identify forward-looking statements but
are not the exclusive means of identifying such statements. Actual
results may differ materially from those projected, expressed or
implied in the forward-looking statements as a result of various
factors including, without limitation, failure to consummate the
sale of the Target and the factors set forth in our filings with
the Securities and Exchange Commission including, without
limitation, Item 3.D of our annual report on Form 20-F for the
fiscal year ended December 31, 2014,
under the caption "Risk Factors." Any forward-looking statements
contained in our releases speak only as of the date of such
release, and we caution existing and prospective investors not to
place undue reliance on such statements. Such forward-looking
statements do not purport to be predictions of future events or
circumstances, and therefore, there can be no assurance that any
forward-looking statement contained our releases will prove to be
accurate. We undertake no obligation to update or revise any
forward-looking statements.
For Further Information:
Company Contact:
Ron
Hadassi
Chairman of the Board of Directors
Tel:
+972-3-608-6048
Fax:
+972-3-608-6050
ron@elbitimaging.com
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SOURCE Elbit Imaging Ltd.