Elbit Imaging Ltd (EMITF)

[midastouch017]

Elbit Imaging Announces Its Subsidiary, Plaza Centers, Has Completed the Sale of Riga Plaza for €93.4 Million


TEL AVIV, Israel, Sept. 15, 2016 (GLOBE NEWSWIRE) -- Elbit Imaging Ltd. (“EI” or the “Company”) (EMITF) (EMITF) announced today, further to the announcement dated May 16, 2016, that Plaza Centers N.V. ("Plaza") (PLAZ.L), an indirect subsidiary of the Company, subsidiary, in which Plaza has a 50% stake, has completed the sale of Riga Plaza shopping and entertainment centre in Riga, Latvia, to a global investment fund. As previously stated, the agreement reflects a value for the business of €93.4 million (reflecting 100%), which is in line with the last reported book value.

Following a price adjustment mechanism and costs incurred in respect of the completion of the sale, Plaza will receive €17.8 million in cash after repayment of banks loan (representing Plaza’s share of the sale of the business), with an additional €0.6 million expected to be received within the next 25 months.

In line with Plaza's stated restructuring plan, at least 75% of the net cash will be distributed to Plaza’s bondholders in the fourth quarter of 2016.