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Sale of Holdings in the Devis Group – Transaction Closing

 

Further to the published by Electra Ltd. ("the Company") on June 16, 2013, in which it announced that on June 14, 2013 an Agreement was signed between Elcatech and Elcable, both foreign companies directly or indirectly owned by the Company, and the Company (which is a party to the agreement since it guarantees certain undertakings in the transaction) on the one hand (hereinafter: the "Sellers") and two foreign corporations that are not related to the Company on the other hand (hereinafter: the "Buyers") for the sale of their holdings in a group of Belgian companies dealing in the electromechanical field and owning real estate in Belgium (hereinafter: "Devis"), the Company is proud to hereby announce that the parties met the conditions stipulated under the Agreement, and the transaction has been closed.

The Company looked into the implications of selling Devis on its financial statements, and it reports as follows: (a) the sale of Devis will be classified as a discontinued operation, and its results will be reported as such starting Q2 2013, (b) the Company will derive a unique pre-tax profit from the realization of Devis, including payment for non-competition and deducting transaction expenses in Q3 2013, at the sum of approximately NIS 65 million (approximately EUR 14 million). The net cash flow expected for the Company from this transaction is approximately NIS 120 million.

However, it should be noted that the profit and net cash flow stated above are an estimate only, based on existing information as of the report date, and may differ.