Published On: Mon, May 11th, 2015

Elbit Imaging Ltd. Sells Its Interest In Two Hotels In Belgium for $53 Million


Radisson Blu Hotel  in Antwerp  Belgium

Israel’s Elbit Imaging Ltd. (TASE, NASDAQ: EMITF) announced that its wholly owned indirect subsidiary entered into a Share Purchase Agreement with Astrid JV Sarl, an affiliate of Kohlberg Kravis Roberts & Co. L.P., with regard to the sale of its entire (100%) holdings in its wholly owned subsidiary (the “Target”) which owns and operates the Radisson Blu Hotel and the Park Inn Hotel, in Antwerp, Belgium.

The transaction reflects an asset value of approximately Euro 48 million ($53 million) for both Hotels subject to working capital and other adjustments as specified in the agreement. The total net consideration payable to the Company’s wholly owned subsidiary (the “Seller”), following the repayments of the Target’s banks loan, and the aforementioned adjustments, is approximately Euro 27 million ($30 million) out of which Euro 1 million ($1.1 million) will be deposited in escrow to secure the Seller’s indemnification obligations under the Share Purchase Agreement.

Ron Hadassi, Chairman of the Board of Directors of the Company, commented, “Signing this transaction for the sale of our hotels in Belgium is the most significant sale by the Company since the completion of debt restructuring in February last year. This step is consistent with the Company’s strategic plan to dispose of assets which have reached maturity and have exhausted their potential, while developing other assets toward their future sale.”

Doron Moshe, Acting CEO and CFO of the Company, added, “The sale of the Company’s hotels in Belgium is an important step in the disposition of the Company’s assets that have reached maturity, with the aim of preparing for repayment of the Company’s debts, which are scheduled to mature in the upcoming years, and also for the investment in other assets, which have not reached maturity yet.”

Located across the street from the city’s central train station at Koningin Astridplein 7, the Radisson Blu Astrid Hotel also lies approximately 15 minutes away from Antwerp Airport Deume and 35 minutes away from Brussels International Airport. In addition to its proximity to the metro station, train station and taxi stop, this Antwerp city hotel places guests near the Diamond District and the De Keyserlei and Meir shopping districts.

Nestled in Antwerp’s intriguing Diamond District, the Park Inn comprises 59 stylish rooms and suites in an ideal location. The hotel is across the street from the central train station, while the area’s two airports are both a convenient ride away. Along with a city center location, guests at this hotel in Antwerp enjoy amenities like sleek décor and in-room Nespresso machines.

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