Huge project in India
ELBIT MEDICAL IMAGING LTD. ANNOUNCES JOINT VENTURE FOR A
LARGE SCALE LUXURY RESIDENTIAL PROJECT IN BANGALORE,
INDIA
Tel-Aviv, Israel, June 7, 2007, Elbit Medical Imaging Ltd. (NASDAQ: EMITF) (“EMI”) today announced that on June 5th, 2007 it has executed a Framework Heads of Terms for the establishment of a joint venture with one the leading real estate developers in Bangalore, India, which became valid on June 6th, 2007 following
fulfillment of certain pre-conditions. The joint venture company to be established (“JV Company”) will be held 50% by each of EMI and the local partner. Subject to the fulfillment of certain conditions, the JV Company will acquire ownership and development rights in approximately 190 acres of land situated in an upscale section of Bangalore. Additionally, the Indian partner will assign to the JV Company joint development rights with the owners of an adjacent area of land measuring approximately 100 acres. The consummation of the transaction is subject to fulfilment
of certain agreed conditions, principally the satisfactory completion of due diligence investigations, and change of zoning to parts of the subject area.
Subject to the fulfillment of the conditions to closing, it is anticipated that EMI will invest an aggregate amount of approximately 7.200 million Rupees (approximately $180 million) in the land acquisition transactions, of which $ 50 million has been paid as an advanced payment upon signature of the Heads of Terms. Such advance payment will be returned to EMI should the preliminary conditions of the Agreement not be fulfilled.
EMI intends to offer to its controlled subsidiary company, Plaza Centers NV (LSE:PLAZ) to take up a 50% participation in EMI’s share of the joint venture. Plaza Centers’ participation requires the approval of its various corporate organs.
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