PPHE Hotel Group Ltd. (AIM:PPH) (formerly Park Plaza Hotels), controlled by Eli Papouchado, has bought out its partner Mordechay Zisser-controlled Elbit Imaging Ltd. (Nasdaq: EMITF; TASE: EMIT) in four Dutch hotels for €26.5 million in cash and shares.
The two companies own the four hotels - the Park Plaza Victoria Amsterdam Hotel, the Park Plaza Utrecht Hotel, the art'otel Amsterdam, and the Park Plaza Airport Hotel - in equal shares, and PPHE managed them. The deal was made at a property value of €169 million.
PPHE also assumed Elbit Imaging's 50% share in the properties' bank loans, amounting to €58 million. PPHE will pay €23 million in cash, allot 700,000 shares, currently worth €2 million, to Elbit Imaging, and pay up to an additional €1.5 million in four years.
Elbit Imaging will report a capital gain of NIS 180 million on the sale.
Elbit Imaging share price rose 3.1% in early trading on Nasdaq today to $2.70, giving a market cap of $67 million, after 1.9% on the TASE today to NIS 10.19. PPHE was unchanged on London’s Alternative Investment Market (AIM) at ₤2.38.
Published by Globes [online], Israel business news - www.globes-online.com - on April 2, 2012
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