Elbit Imaging Announces Update Regarding the Agreement to Sell Its Project in Bangalore, India by Its Subsidiary, Elbit Plaza India Real Estate Holdings Limited
TEL AVIV, Israel, Sept. 30, 2016 (GLOBE NEWSWIRE) -- Elbit Imaging Ltd. (“EI” or the “Company”) (EMITF) (EMITF) announced today, in further to its announcement dated on December 2, 2015, regarding an agreement to sell 100% of its interest in a special purpose vehicle which holds a site in Bangalore, India by Elbit Plaza India Real Estate Holdings Limited (“EPI” - a joint venture company of EI and its 45% subsidiary, Plaza Centers N.V.) to a local investor , the following matters:
The Sale of the project in Bangalore has not been completed until the long stop date, September 30, 2016 (the "LSD").
As a result, the Company and the Local Investor has reached these preliminary understandings:
a. The Local Investor will pay EPI an advance payment of 5 Crore Rupees (approximately €0.65 million) prior to 30.9.2016.
b. The securities provided by the Local Investor to EPI under the Sale Agreement will remain effective and unchanged (the "Securities").
c. Subject to the payment of the First Advance Payment, the LSD will be extended until November 15, 2016.
d. The Local Investor will pay additional advance payments (the "Additional Advance Payments") as follows:
i. 32 Crore rupees (approximately €4.3 million) in two instalments during the fourth quarter of 2016.
ii. Additional 22.5 Crore rupees (approximately €3 million) during the second quarter of 2017.
e. Subject to the execution of all the Additional Advance Payments, the LSD will be extended until September 15, 2017.
f. If the Local Investor will fail to execute any of the advance payments, than EPI shall be able to enforce its rights under the Sale Agreement including the execution of the Securities.
At this preliminary stage, there is no definitive agreement between EPI and the Local Investor and there is no certainty that any of the aforementioned understandings will be executed.
In case the parties will not reach such final agreement, EPI will consider its further steps with respect to the Sale Agreement, including, inter alia, the execution of the Securities.
The Company will update regarding any new developments.
