Elbit Imaging Announces Update Regarding the Disposal of Suwalki Plaza and Torun Plaza Shopping and Entertainment Centers in ...
October 18 2016 - 04:12PM
Elbit Imaging Ltd. (“EI” or the
“Company”) (TASE:EMITF) (NASDAQ:EMITF) announced
today, in further to the announcement dated August 1, 2016, that
Plaza Centers N.V. ("Plaza")
(LSE:PLAZ)
, an indirect subsidiary of the Company,
has signed a new non-binding Letter of Intent (the
“
LOI”) with a global investment fund (the
“
Purchaser”) regarding the sale of Suwałki Plaza
shopping and entertainment center in Poland. The LOI, which binds
the Purchaser to a set of strict timelines in order for the
transaction to conclude during the fourth quarter of 2016, values
the asset at €42.3 million. Should the transaction complete as
planned, following the repayment of the existing bank loan, the
expected net proceeds to Plaza are estimated at approximately €15
million.
While a non-binding Letter of Intent had
previously been signed with another global investment fund, with
respect to both Torun Plaza and Suwałki Plaza, as announced on
August 1, 2016, this party failed to meet the agreed terms of the
transaction and, therefore, its exclusivity on the sale expired.
Plaza is continuing to explore options for a separate sale of Torun
Plaza.
While the disposal of Suwałki Plaza is expected
to be finalized in the fourth quarter of 2016, at this stage there
is no certainty that the transaction will be completed.
The sale of Suwałki Plaza is consistent with
Plaza's stated strategy to oversee an orderly disposal of its
mature assets in order to reduce Plaza's debt levels.
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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