Engel General Developers: Private Placement in a European Subsidiary
December 17 2003 - 9:30AM
PR Newswire (US)
Engel General Developers: Private Placement in a European
Subsidiary HAIFA, Israel, Dec. 17 /PRNewswire/ -- Engel General
Developers Ltd. , a leading housing developer in Israel and other
emerging markets, today reported that following a letter of intent
dated October 2003, a European subsidiary has entered into a
transaction with an international investment fund specializing in
real-estate (the "Fund"), pursuant to which said Fund shall become
a partner in the Company's residential development activities in
Central and Eastern Europe. The investment will be in the capital
of Arces International B.V. ("Arces"), a Dutch subsidiary of the
Company which consolidates these activities. Arces shall issue to
the Fund 50% of its outstanding share capital in return for the
amount of euro 15.5 million. The management of the projects in the
Czech Republic, Hungary and Poland shall be performed by local
companies affiliated by the Company, in return for management fees
equal to 5% of the cost of construction and planning of the
projects. In addition, a subsidiary of the Company shall be
responsible for meeting the cost budget of the projects. Until the
closing of the transaction the parties have agreed to complete
certain actions, including obtaining the approval of the Czech
antimonopoly authorities and other approvals. The Company views the
Fund as an important and strategic partner which will enable it to
increase the volume of is activity in Central and Eastern Europe.
This release contains certain forward-looking statements which
involve known and unknown risks, uncertainties or other factors not
under the Company's control which may cause actual results,
performance or achievements of the Company to be materially
different from the results, performance or other expectations
implied by these forward-looking statements. These factors include,
but are not limited to, those detailed in the Company's filings
with the Securities and Exchange Commission. DATASOURCE: Engel
General Developers Ltd. CONTACT: Zohar Levy, CFO of Engel General
Developers Ltd., +972-4-8422777, or fax, +972-4-8419333
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