August 21 (SeeNews) - Israeli Elbit Imaging said it has signed a non-binding letter of intent with an unnamed international investment fund to sell its entire shareholding in a company owning the Radisson Complex in Romanian capital Bucharest for 177.5 million euro ($208.4 million).
Elbit Imaging controls 98.2% of Radisson Complex through local company Bucuresti Turism.
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The transaction is expected to occur within three to four months from the signing of the letter of intent, Elbit Imaging said in a statement filed with the NASDAQ stock market on Friday.
The deal depends on the successful conclusion by the purchaser of its due diligence investigations, on the signing of a binding share purchase agreement and on the obtaining of externally sourced financing by the purchaser, according to the statement.
Also, the deal must obtain the approval of Romania's anti-trust body.
The net proceed to the company will be calculated following the repayment of the secured bank loan, customary working capital adjustments and other agreed adjustments as of the closing date.
The Radisson Complex has 763 rooms. The complex includes the five star Radisson Blu hotel with a capacity of 487 rooms, the newly renovated four star Park Inn Hotel with a capacity of 276 rooms and 7,200 sq m of commercial area that includes the biggest casino in Bucharest, a fitness centre and fashion shops.
The Radisson Blu hotel and the Park Inn hotel are managed by Rezidor, which is part of Carlson Rezidor Hotel Group.
Elbit Imaging is an Israeli holding company with activities in real estate, medical imaging, hotels, shopping malls, and retail.
($=0.8514 euro)