|Globes, Tel Aviv, IsraelMcClatchy-Tribune
April 02, 2012--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 â‚¬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 â‚¬169 million.
PPHE also assumed Elbit Imaging's 50 percent share in the properties' bank loans, amounting to â‚¬58 million. PPHE will pay â‚¬23 million in cash, allot 700,000 shares, currently worth â‚¬2 million, to Elbit Imaging, and pay up to an additional â‚¬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 percent in early trading on Nasdaq today to $2.70, giving a market cap of $67 million, after 1.9 percent on the TASE today to NIS 10.19. PPHE was unchanged on London's Alternative Investment Market (AIM) at UKpound2.38.
(c)2012 the Globes (Tel Aviv, Israel)
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