Elbit Imaging Announces Its Subsidiary, Plaza Centers, Has Signed an Agreement to Sell Riga Plaza for €93.4 Million
May 16 2016 - 6:27AM
Elbit Imaging Ltd. (“EI” or the
“Company”) (TASE:EMITF) (NASDAQ:EMITF) announced
today, that
Plaza Centers N.V. ("Plaza")
(LSE:PLAZ), an indirect subsidiary of the Company, has announced
that one of its subsidiaries, in which Plaza has a 50% stake, has
entered into a business sale agreement with respect to the sale of
Riga Plaza shopping and entertainment centre in Riga, Latvia, to a
global investment fund. The agreement reflects a value for the
business of approximately €93.4 million which is in line with the
last reported book value.
The asset, which is a dominant scheme in the
Latvian capital comprising 50,000 sqm of GLA, is the second biggest
shopping centre to have been developed by Plaza.
In line with Plaza’s stated restructuring plan,
75% of the net cash proceeds from Plaza’s share of the sale of the
business, after the repayment of the bank loan (approximately €55
million, reflecting 100%), will be distributed to Plaza’s
bondholders within the quarter following the closing. The closing
of the transaction is subject to several conditions precedent, all
of which are expected to be fulfilled in the coming months.
About Elbit Imaging Ltd.
Elbit Imaging Ltd. operates in the following
principal fields of business: (i) Commercial centers - initiation,
construction, and sale of commercial centers and other mixed-use
property projects, predominantly in the retail sector, located in
Central and Eastern Europe. In certain circumstances and depending
on market conditions, the Group operates and manages commercial
centers prior to their sale. (ii) Hotel - operation and
management of the Radisson hotel Complex in Bucharest, Romania.
(iii) Medical industries and devices - (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.
(iv) Plots in India - plots designated for sale initially
designated to residential projects.
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,” “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, a
change in market conditions, a decision to deploy the cash for
other business opportunities 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, 2015, 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 in
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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