FONT-SIZE Plus   Neg

Gazit-Globe,First Capital Realty Announce Proposal To Take Gazit America Private

Gazit-Globe Ltd. (GZT) and First Capital Realty Inc. (FCR.TO) announced that Gazit-Globe and First Capital Realty have submitted a non-binding preliminary proposal to Gazit America Inc. (GAA.TO) with respect to the acquisition by Gazit-Globe of all of the common shares of Gazit America not already beneficially owned by Gazit-Globe for consideration valued at $7.07 for each share of Gazit America, payable in cash and common shares of First Capital Realty. Gazit-Globe currently beneficially owns approximately 73.1% of the outstanding shares of Gazit America.

The company said the cash portion of the consideration will be $2.90 for each share of Gazit America, subject to adjustment based on the 20-trading day volume-weighted average share price of the common shares of Equity One, Inc. on the seventh trading day prior to the Special Meeting.

The First Capital Realty common shares to be distributed to Gazit America minority shareholders will be the prorata portion of those delivered by First Capital Realty in payment by it for the shares of Gazit America's subsidiaries, ProMed Properties (CA) Inc., which owns the medical office and retail properties of Gazit America and ProMed Asset Management Inc., and for the assumption of certain property-related indebtedness from Gazit America.

As part of the preliminary proposal, First Capital Realty is prepared to purchase these shares from Gazit America and assume this indebtedness from Gazit America.

The consideration value of $7.07 per share of Gazit America assumes a price of $18.75 per share for the First Capital Realty common shares, a market price of US$21.26 per share for the Equity One shares and the receipt by the minority shareholders of Gazit America of a cash payment of $2.90 and 0.2222 common shares of First Capital Realty for each Gazit America common share.

The proposed transaction would be expected to close in July 2012.

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Quick Facts

Editors Pick
AT&T announced a definitive agreement to purchase Time Warner in a stock-and-cash transaction valued at $107.50 per share. This purchase price implies a total equity value of $85.4 billion and a total transaction value of $108.7 billion, including Time Warner's net debt. AT&T expects the deal to close before year-end 2017. Chipmaker Qualcomm is reportedly in talks with NXP Semiconductor NV (NXPI) for a possible acquisition, reports said. According to Bloomberg, negotiations are on with a probable price of $110 t $120 per NXP share. The deal would value NXP at around $34.7 billion. Regulators have confirmed the eleventh U.S. fatality linked to Takata Corp.'s defective air bag inflators. The National Highway Traffic Safety Administration or NHTSA said Thursday that a crash fatality in Riverside County, California, was tied to the rupture of a recalled Takata air bag inflator.
comments powered by Disqus
Follow RTT