Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) subsidiary EPN EDT Holdings II LLC has completed the offer to purchase of EDT Retail Trust (ASX: EDT), which began in March, for $242 million. EPN now owns 96.4% of the EDT, which owns 48 community shopping centers in the US, and will make a compulsory offer for the remaining shares and delist the company from the Australian Stock Exchange.
In its financial report for the first quarter, EDT valued the portfolio at $1.4 billion, and that company's shareholders' equity was $529 million.
Elbit Imaging and its subsidiary Plaza Centers NV (LSE:PLAZWSE:WLZ) jointly own 45% of EPN, Eastgate Property LLC owns 45%, and Menorah Mivtachim Holdings Ltd. (TASE: MORA) owns 9%. Elbit Imaging and Plaza Center's share in the buyout was $57 million.
Elbit Imaging acquired its initial stake in EDT in April 2010, in order to gain a foothold in the US. Elbit Imaging co-CEO Dudi Machluf said that, since its initial investment, EDT's business has greatly improved through new leases, reduced operating costs, and the refinancing of $500 million in credit at better terms, which together improved the company's cash flow.
Elbit Imaging's share price rose 1.3% on Nasdaq on Friday to $6.09, giving a market cap of $151 million, and rose 3.8% by midday on the TASE today to NIS 21.07. Plaza Center's share price closed at ₤0.83 in London on Friday, giving a market cap of ₤266 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2011
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