Income-producing real estate company Gazit Globe Ltd. (TASE: GZT; TSX: GZT) is recruiting another investment institution for the acquisition of full ownership in Atrium, a subsidiary of Gazit-Globe. After having already agreed on the sale of 12% of the shares in Atrium to insurance and pension company Menorah Mivtachim Holdings Ltd. (TASE: MORA) , Gazit-Globe today reported that it would sell 6% of the shares in Atrium to The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) for €75 million (NIS 293 million).
The sale will be at the same price at which Gazit Globe will acquire all the minority holdings in Atrium from the public. Completion of the deal for the acquisition of the minority shares and selling some of them to Menorah Mivtachim and Phoenix is scheduled for January 2020, subject to obtaining a special majority of the minority shareholders in Atrium and approval by a court in Jersey Island.
The current deal with Phoenix follows Gazit Globe's announcement on July 23, 2019 of an agreement with Atrium for the acquisition of 40% of the shares in Atrium - 150 million shares - at €3.75 per share, making the total proceeds €565 million (NIS 2.2 billion).
Simultaneously with the signing of the agreement in July, Gazit Globe also reported that it had contracted an agreement with Menorah Mivtachim in which if and when the agreement with Atrium is approved, Gazit-Globe would sell 12% of Atrium's share capital at the same price at which it bought them - a total price of €150 million (NIS 600 million).
At the same time, before the deal is completed, Atrium plans to distribute a special dividend of €0.60 per share to all of its shareholders, following which the price in the deal will be adjusted to €3.15 per share, making the cost of the acquisition €475 million (NIS 1.9 billion).
Gazit Globe founder and CEO Chaim Katzman said today, "We are glad to announce the addition of Phoenix to the strategic deal for making Atrium a private company. Phoenix is joining Menorah Mivtachim, which will jointly hold 18% of Atrium's share capital. We are glad to see two leading concerns in the Israeli capital market joining as partners in one of our important investments."
Published by Globes, Israel business news - en.globes.co.il - on September 1, 2019
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