Bank Hapoalim will receive an option to 3.5% of Elbit Imaging and personal guarantees from Mordechay Zisser for Europe Israel MMS's debt.
Europe Israel MMS Ltd., through which Mordechay Zisser controls Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) has reached a NIS 850 million debt settlement with Bank Hapoalim (TASE: POLI). Under the settlement, the bank will receive an option to 3.5% of Elbit Imaging and personal guarantees from Zisser. The options can be exercised in the three annual tranches in 2016-18, at different strike prices.
From the end of 2013, Zisser will make eight annual NIS 50 million payments, and then pay the NIS 450 million balance in a single installment.
Zisser's spokesman said, "Motti Zisser has reached agreements with Bank Hapoalim. These agreements related to his private business."
Elbit Imaging's share price rose 18.3% by early afternoon on the TASE today to NIS 10, after closing at $2.21 on Nasdaq on Tuesday, giving a market cap of $55 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 5, 2012
© Copyright of Globes Publisher Itonut (1983) Ltd. 2012