New Completion Date for Additional Share Purchase (7754F)

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RNS Number : 7754F

AFI Development PLC

03 May 2011

3 May 2011

POSTPONEMENT OF COMPLETION DATE FOR PURCHASE OF ADDITIONAL

AFI DEVELOPMENT SHARES BY AFRICA ISRAEL INVESTMENTS

AFI Development plc ("AFI Development" or "the Company") today reports that the final stage of the purchase of its shares by its major shareholder, Africa Israel Investments Ltd. ("Africa Israel Investments") has been postponed, to be completed by 30 June 2011.

This transaction was announced on 26 January 2011 as an agreement to purchase the entire holdings of companies wholly-owned by Mr. Alexander Khaldey, (the "Sellers") in the Company, representing approximately 9.7% of the equity and voting rights in the Company (the "Holdings"), for a total consideration of approximately USD 129 million.

Africa Israel Investments has announced that on 2 May 2011 it reached an agreement with the Sellers, according to which the date for completion of the second stage of the transaction shall be postponed and carried out in two parts. In the first part, the Sellers will transfer to Africa Israel Investments part of the Holdings which constitutes 1.61% of the equity and voting rights in the Company, for a consideration of USD 20 million, which will be deposited in an escrow account in the coming days and will be paid to the Sellers shortly after the publication of the Company's financial statements as of 31 March 2011 (which are expected to be published by no later than the end of May). In the second part, the Sellers will transfer to Africa Israel Investments the remainder of the Holdings which constitutes 5.14% of the equity and voting rights in AFI Development, for a consideration of approximately USD 64 million, by 30 June 2011. The rest of the terms of the transaction have remained unchanged.

Upon completion of the first part, Africa Israel Investments is expected to hold approximately 58.6% of the Company's share capital, and upon completion of the second part, Africa Israel Investments is expected to hold approximately 63.7% of the Company's share capital.

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For further information, please contact:

AFI Development

Stanislav Joukov +7 495 796 9988

Natalia Ivanova

Citigate Dewe Rogerson, London +44 20 7638 9571

David Westover

Lucie Holloway

About AFI Development

AFI Development is one of the leading real estate development companies operating in Russia. Established in 2001, AFI Development is a publicly traded subsidiary of Africa Israel Investments Ltd.

AFI Development is listed on the Main Market of the London Stock Exchange and aims to deliver shareholder value through a commitment to innovation and continuous project development, coupled with the highest standards of design, construction, and quality and customer service.

AFI Development focuses on developing and redeveloping high quality commercial and residential real estate assets in Moscow, the Moscow Region, and other major cities in Russia and the CIS. The Company's existing portfolio of 30 development projects comprises commercial projects focused on offices, shopping centres, hotels and mixed-use properties, and residential projects. AFI Development's strategy is to sell the residential properties it develops and to either lease the commercial properties or sell them for a favourable return.

AFI Development is a leading force in urban regeneration, breathing new life into city squares and neighbourhoods and transforming congested and underdeveloped areas into thriving new communities. The Company's long-term, large-scale regeneration and city infrastructure projects establish the necessary groundwork for the successful launch of commercial and residential properties, providing a strong base for future.

This information is provided by RNS

The company news service from the London Stock Exchange

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