Elbit Imaging Announces Update Regarding the Agreement to Sell Its Project in Bangalore, India by Its Subsidiary, Elbit Plaza...
September 30 2016 - 6:58AM
Elbit Imaging Ltd. (“EI” or the “Company”)
(TASE:EMITF) (NASDAQ:EMITF) announced today, in further to its
announcement dated on December 2, 2015, regarding an agreement to
sell 100% of its interest in a special purpose vehicle which holds
a site in Bangalore, India by Elbit Plaza India Real Estate
Holdings Limited (“
EPI” - a joint venture company
of EI and its 45% subsidiary, Plaza Centers N.V.) to a local
investor , the following matters:
- The Sale of the project in Bangalore has not been completed
until the long stop date, September 30, 2016 (the
"LSD").
- As a result, the Company and the Local Investor has reached
these preliminary understandings:a. The Local Investor will pay EPI
an advance payment of 5 Crore Rupees (approximately €0.65 million)
prior to 30.9.2016.b. The securities provided by the Local Investor
to EPI under the Sale Agreement will remain effective and
unchanged (the "Securities").c. Subject to the
payment of the First Advance Payment, the LSD will be extended
until November 15, 2016.d. The Local Investor will pay additional
advance payments (the "Additional Advance
Payments") as follows: i. 32
Crore rupees (approximately €4.3 million) in two instalments during
the fourth quarter of 2016. ii.
Additional 22.5 Crore rupees (approximately €3 million) during the
second quarter of 2017.e. Subject to the execution of all the
Additional Advance Payments, the LSD will be extended until
September 15, 2017.f. If the Local Investor will fail to execute
any of the advance payments, than EPI shall be able to enforce its
rights under the Sale Agreement including the execution of the
Securities.
- At this preliminary stage, there is no definitive agreement
between EPI and the Local Investor and there is no certainty that
any of the aforementioned understandings will be executed.
- In case the parties will not reach such final agreement, EPI
will consider its further steps with respect to the Sale Agreement,
including, inter alia, the execution of the Securities.
The Company will update regarding any new
developments.
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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