Plaza Centers N.V. UPDATE RE THE TERM SHEET TO SELL PLOT IN CHENNAI (1147C)
June 13 2019 - 6:36AM
UK Regulatory
TIDMPLAZ
RNS Number : 1147C
Plaza Centers N.V.
13 June 2019
June 13 2019
PLAZA CENTERS N.V.
UPDATE REGARDING THE TERM SHEET TO SELL THE PLOT IN CHENNAI,
INDIA
Plaza Centers N.V. ("Plaza" or the "Company") announced today,
further to its press release dated March 4, 2019, regarding the
termination of the Joint Development Agreement ("JDA") and the Term
Sheet between Elbit Plaza India Real Estate Holdings Limited (a
subsidiary held by the Company (50%) and Plaza Centers N.V. (50%))
("EPI") and the purchaser (the "Purchaser") regarding a 74.7 acre
plot in Chennai, India held by an SPV subsidiary of EPI, a
transaction with total consideration of approximately Euro 13.5
million (INR 108 crores) (Plaza part approximately EUR 6.75
million) (the "Consideration"), that the parties have signed a
share purchase agreement ("SPA") according to which:
a. The Purchaser has paid a deposit of INR 5 crores
(approximately Euro 0.625 million) in order to provide the
Purchaser with an additional six months to complete the closing,
which may be extended by another month upon payment by the
Purchaser of an additional deposit of INR of 5 crores. As of this
date, the Purchaser has deposited a total of INR 15 crores
(approximately Euro 1.875 million) (the "Deposits").
b. If the Purchaser is unable to complete the closing within the
aforesaid time periods, then the parties will mutually appoint an
international real estate consulting firm for the purpose of
identifying a third-party buyer within a period of six months.
c. If the Purchaser is unable to complete the closing and no
third-party buyer is found within the aforesaid time periods, both
the JDA and SPA shall be terminated, subject to the Purchaser
receiving the Deposits. However, the Purchaser will not be entitled
to reimbursement of expenses incurred by it under the JDA.
d. Any final price received from a third-party buyer above the
Consideration will be shared 67% by the Purchaser and 33% by EPI.
The Consideration is subject to adjustment with respect to the
Deposits and the existing cash in the SPV.
e. The Consideration will be remitted in Euro at the base rate
already agreed upon by the parties. Foreign exchange loss arising
due to change in conversion rate from INR to euro will be borne by
the Purchaser and gain will be credited to the account of EPI.
f. The parties withdraw the arbitration proceedings and other notices.
At this stage, there is no certainty that the SPA closing will
occur.
Ends
For further details, please contact:
Plaza
Avi Hakhamov, Acting CEO +36 1 6104523
Forward-looking statement
This press release may contain forward-looking statements with
respect to Plaza Centers N.V. future (financial) performance and
position. Such statements are based on current expectations,
estimates and projections of Plaza Centers N.V. and information
currently available to the company. Plaza Centers N.V. cautions
readers that such statements involve certain risks and
uncertainties that are difficult to predict and therefore it should
be understood that many factors can cause actual performance and
position to differ materially from these statements.
Notes to Editors
Plaza Centers N.V. (www.plazacenters.com) is listed on the Main
Board of the London Stock Exchange, as of 19 October 2007, on the
Warsaw Stock Exchange (LSE: "PLAZ", WSE: "PLZ/PLAZACNTR") and, on
the Tel Aviv Stock Exchange. Plaza Centers has been active in real
estate development in emerging markets for over 23 years.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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