Alon Holdings Blue Square - Israel Ltd. (BSI)

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Alon Blue Square Announces Receipt of Additional Offer to Purchase its Holdings in Blue Square Real Estate Ltd

YAKUM, Israel, January 15, 2016 /PRNewswire/ --

Alon Blue Square Israel Ltd. (NYSE: BSI) (the "Company") announced today that it had received an additional offer to purchase the Company's holdings in Blue Square Real Estate Ltd. ("BSRE"), which is traded on the Tel Aviv Stock Exchange. The Company currently holds 53.92% of the outstanding shares of BSRE.

The offer requests a no shop period until January 24, 2016 at 8pm Israel time, during which period the Company would negotiate only with the purchaser and not with any other party or otherwise receive offers for the sale by the Company of its interest in BSRE. To the extent the purchaser completes its inspection of BSRE to its satisfaction during this period and the parties reach agreement on a purchase agreement, the purchaser would purchase the Company's interest in BSRE on an as-is basis based on a NIS 1.7 billion valuation of BSRE.

The purchase agreement, if signed, would be subject to acceptable closing conditions and mainly approval of the Israeli Antitrust Authority, the Company's bank lenders, and the holders of the Company's bonds, and consents that may by required by law or under agreement, without conditions.

The offer has requested that the Company respond by 8:00 am Israel time on Sunday, January 17, 2016 if it agrees to the no shop described above.

The Company has not yet decided whether to agree to the no-shop request, nor whether to sell its interest in BSRE, and the terms of this offer have not yet been approved by the board of directors of the Company.

There is no guarantee that any purchase agreement will be signed for the transaction, and if signed, that such a transaction will be completed.

Alon Blue Square Israel Ltd. (hereinafter: "Alon Blue Square") operates in five reportable operating segments and is the largest retail company in the State of Israel. In the Fueling and Commercial Sites segment, Alon Blue Square through its 63.13% subsidiary, which is listed on the Tel Aviv stock exchange ("TASE"), Dor Alon Energy in Israel (1988) Ltd. is one of the four largest fuel retail companies in Israel based on the number of petrol stations and a leader in the field of convenience stores operating a chain of 211 petrol stations and 220 convenience stores in different formats in Israel. In its supermarket segment, Alon Blue Square, as a pioneer in the modern food retail, through Mega Retail Ltd., held 67% by Alon Blue Square, currently operates 125 supermarkets under different formats, each offering a wide range of food products, "Near Food" products and "Non-Food" products at varying levels of service and pricing. In its "Houseware and textile" segment, Alon Blue Square, through its TASE traded 77.51% subsidiary, Na'aman Group (NV) Ltd. Operates specialist outlets in self-operation and franchises and offers a wide range of "Non-Food" products as retailer and wholesaler. In the Real Estate segment, Alon Blue Square, through its TASE traded 53.92% subsidiary Blue Square Real Estate Ltd., owns, leases and develops income producing commercial properties and projects. In addition, Alon Blue Square operates the issuance and clearance of gift certificates.


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