UPDATE REGARDING SALE OF PROJECT BANGALORE INDIA
May 18, 2021
PLAZA CENTERS N.V.
UPDATE REGARDING SALE OF ITS HOLDINGS IN THE PROJECT IN BANGALORE, INDIA
Plaza Centers N.V. ("Plaza" or the "Company") announces today, further to its announcement dated January 10, 2020 (the "Previous Announcement"), regarding the agreement ("Agreement") between Elbit Plaza India Real Estate Holdings Limited (a subsidiary held by the Company (50%) and Elbit Imaging Ltd. (50%)) ("EPI") and a local investor (the "Purchaser") for the sale of 100% interest in the Special Purpose Vehicle ("SPV") which holds a site in Bangalore, India, as follow:
1. The insolvency proceedings initiated against the Purchaser for the recovery of the due amounts has been dismissed by the National Company Law Tribunal in Bangalore since the case is not maintainable before it and therefore Plaza should claim for the recovery of its debt or for the resolution of its dispute in any other forum. In light of the foregoing, Plaza is considering filing an appeal or initiating arbitration proceedings against the Purchaser.
2. Regarding the criminal cases that were filled concerning the dishonoring of the cheques which were given as a security for payment of certain installments, all the accused persons appeared before the court and were granted bail. In addition, all further proceedings continue in the matter.
3. As of this date, the Purchaser paid to EPI approximately EUR 11.2 million (INR 87.00 crores) (Plaza part INR 43.5 crores (approximately EUR 5.6 million). SPV is entitled to receive a total consideration of INR 356 crores (approximately EUR 41.16 million) (Plaza part INR 178 crores (approximately EUR 20.58 million if the Purchaser does not close the transaction in accordance with the Agreement. In addition, the Purchaser has mortgaged approximately 8.7 acres of plots as a security for the completion of the transaction.
Plaza will continue to take all measures warranted in the circumstances to protect its interest and will update regarding any new development in this matter.
For further details, please contact:
Ran Yaacovs, CFO 972-546-303-006
This press release may contain forward-looking statements with respect to Plaza Centers N.V. future (financial) performance and position. Such statements are based on current expectations, estimates and projections of Plaza Centers N.V. and information currently available to the Company. Plaza Centers N.V. cautions readers that such statements involve certain risks and uncertainties that are difficult to predict and therefore it should be understood that many factors can cause actual performance and position to differ materially from these statements.
Notes to Editors
Plaza Centers N.V. (www.plazacenters.com) is listed on the Main Board of the London Stock Exchange, as of 19 October 2007, on the Warsaw Stock Exchange (LSE: "PLAZ", WSE: "PLZ/PLAZACNTR") and, on the Tel Aviv Stock Exchange.