Breaking News
FONT-SIZE Plus   Neg
Share SHARE

Gazit-Globe, First Capital Submit Preliminary Proposal To Buy Gazit America

RELATED NEWS
Trade GZT now with 

Gazit-Globe Ltd. (GZT: Quote), owners and operators of supermarket-anchored shopping centers, Sunday said it has submitted, together with First Capital Realty Inc. (FCR.TO: Quote), a non-binding preliminary proposal to acquire all of the common shares of Gazit America Inc. (GAA.TO: Quote), not already beneficially owned by it, for a consideration valued at C$7.07 per share, payable in cash and common shares of First Capital Realty.

Gazit-Globe currently beneficially owns about 73.1 percent of the outstanding shares of Gazit America.

According to the company, the consideration will include a cash portion of C$2.90 and a 0.2222 of First Capital Realty common share. The proposal represents a premium of 43.8 percent to the 20-trading day volume-weighted price of the common shares of Gazit America. The proposed transaction is expected to close in July.

As part of the preliminary proposal, First Capital Realty offered to purchase the shares of Gazit America's subsidiary, ProMed Properties (CA) Inc., which owns 12 medical office and retail properties in Canada and a 50 percent interest in an additional property jointly owned with First Capital Realty.

This will total nearly 86,000 square meters, or about 930,000 square feet, of leasable space and includes mortgages on the properties, for total consideration of around C$97.1 million, Gazit-Globe stated.

According to Gazit-Globe, payment for ProMed Properties shares will be made by about 5.2 million of First Capital Realty common shares.

In addition to its medical office operation, Gazit America owns about 12.5 percent of Equity One, the U.S. subsidiary of Gazit-Globe. Assuming acceptance of this proposal, these shares will be fully owned by Gazit-Globe.

Roni Soffer, president of Gazit-Globe said, "This arrangement proposal represents a win-win situation for all parties. Gazit America's shareholders will be able to realize a significant premium on their common shares, First Capital Realty will acquire a quality portfolio of medical office and retail assets at a fair price, and the resulting structure will be simplified and provide for increased corporate and operational efficiency from Gazit-Globe's perspective."

Register
To receive FREE breaking news email alerts for Gazit-Globe and others in your portfolio

by RTT Staff Writer

For comments and feedback: editorial@rttnews.com

Business News

Editors Pick
Stocks moved notably higher over the course of the trading day on Friday after initially showing a lack of direction. The gains on the day extended the recent upward trend by the markets, with the tech-heavy Nasdaq reaching its best closing level in almost a month. Looking to capitalize on news of an Ebola diagnosis in New York City, Republican Senate candidate Scott Brown issued a statement Friday criticizing his Democratic opponent Sen. Jeanne Shaheen, D-N.H., for "waffling" on a travel ban. In another troubling sign for Democrats, the results of a Gallup poll released on Friday show that Tea Party Republicans are much more motivated to vote in the upcoming midterm elections than other Americans. The poll found that 73 percent of Tea Party Republicans are "extremely" or "very" motivated to vote in this year's elections.
comments powered by Disqus
FREE Newsletters, Analysis & Alerts

 

Stay informed with our FREE daily Newsletters and real-time breaking News Alerts. Sign up to receive the latest information on business news, health, technology, biotech, market analysis, currency trading and more.