TEL AVIV, Israel, June 9, 2015 /PRNewswire/ --
Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) ("Elbit" or the
"Company") announced today following its previous announcements
dated February 19, 2015 and
April 14, 2015 (the "Previous
Announcements") that, shareholders holding 21.48% of
Bucuresti Turism S.A. ("BUTU"), exercised their right to
withdraw from BUTU. The total amount payable by BUTU for such
withdrawal requests is approximately Euro
13.9 million (approximately USD 15.5
million). An amount of Euro 2
million was financed by BUTU from its own resources and the
remainder in the amount of approximately Euro 11.9 million was financed by the Company
through shareholder loan granted to BUTU.
Upon the completion of the delisting, all the shares acquired by
BUTU during the delisting process shall be cancelled and the share
capital of BUTU shall be decreased accordingly. Following the share
capital decrease, the Company shall hold (indirectly) approximately
98% of BUTU's share capital.
Following the expiry of the withdrawing term and following the
payment of the aforesaid amount to the withdrawing shareholders,
BUTU shall be delisted from RASDAQ market upon the approval of the
Financial Supervisory Authority in Romania.
Mr. Ron Hadassi, Chairman of
the Board of Directors, commented:
The completion of the takeover by the Company over the "Radisson
Blu" Hotel in Bucharest is part of
the Company's strategic plan to invest in the high-quality assets
of the Company in order to maximize their potential. The Company
believes that the Hotel has a significant future betterment
potential, in view of the improvement in the Hotel's business
results in recent years as well as the improvement in the
macroeconomic environment in Romania.
Mr. Doron Moshe, Acting CEO
and Chief Financial Officer, further added:
The purchase of the minority interest and the delisting of BUTU
will allow the Company greater flexibility in the management and
operation of the Hotel and in the management and use of the Hotel's
free cash flow. For that purpose, the Company invested
approximately Euro 11.9 million
through a shareholder loan granted to BUTU.
Simultaneously to the minority interest purchase proceeding, and
as part of the Company's strategy to improve the real estate
value of the Hotel, the Company has launched an extensive
renovation process at the Hotel and the conversion of approx. 160
rooms into apartments to be operated under the Park Inn brand. The
estimated cost of the renovation is approx. Euro 6 million, and shall be financed by the
Hotel's own resources.
About "Radisson Blu" in Bucharest,
Romania
The hotel was opened in September
2008 and is located in the center of Bucharest and since then constituted a
significant part of the exclusive hotels market in Bucharest. The hotel consists of 719 rooms and
it is managed by Rezidor. The hotel also includes approximately
7,200 square meters of commercial areas including World Class
Fitness Center ,Platinum Casino and commercial area of fashion,
jewelry, gifts, antiques and beauty shops.
About Elbit Imaging Ltd.
Elbit Imaging Ltd. operates in the following principal fields of
business: (i) Commercial and Entertainment Centers - Initiation,
construction and sale of shopping and entertainment centers and
other mixed-use real property projects, predominantly in the retail
sector, located in Central and Eastern
Europe, primarily through its subsidiary Plaza Centers N.V.
In certain circumstances and depending on market conditions, we
operate and manage commercial and entertainment centers prior to
their sale; (ii) Hotels - Hotel operation and management; (iii)
Medical Industries - (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; and (iv) Residential
Projects - Initiation, construction and sale of residential
projects and other mixed-use real property projects, predominately
residential, located primarily in India.
Safe Harbor Statement under the Private Securities Litigation
Reform Act of 1995
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," "would," "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, the failure of the Rights
Offering to receive requisite regulatory approvals 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, 2014, 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
our releases will prove to be accurate. We undertake no obligation
to update or revise any forward-looking statements.
Company Contact:
Ron Hadassi
Chairman of the Board of Directors
Tel: +972-3-608-6048
Fax: +972-3-608-6050
ron@elbitimaging.com
SOURCE Elbit Imaging Ltd.