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Electra Real Estate Ltd

Advanced negotiations for the sale of Company’s holdings in Harbor Group


Electra Real Estate Ltd. (hereinafter: the “Company”) proudly declares that it is in advanced negotiations for the exercise of all its holdings in Harbor Group International LLC as well as of all its holdings in other companies of the Harbor Group, which utilize as a general partner in certain transactions (hereinafter: “HGI”) (constituting appx. 20% of the rights in HGI and a similar percentage of the rights in the other said companies of Harbor Group), to other shareholders in HGI for the price of US$ 15 million.  According to principles that were reached in the negotiations so far, the consideration is to be paid in four installments; the first installment is predicted to be paid on the transaction’s completion date; the remaining amount is predicted to be paid in three installments within a period no later than three years from the transaction’s completion date.

The consideration deriving from this transaction is expected to yield a free cash flow at a total amount of US$ 15 million for the Company (appx. NIS 25.3 million) on the dates provided above. Upon production of this immediate report, the said agreement has not yet been signed and, as such will be signed, it is predicted to include suspending conditions which are uncertain.  Accordingly, there is no certainty regarding the signing of such agreement or regarding its signature under the conditions provided above, or that if signed – it will be executed.  Therefore, the information provided in this immediate report regarding the transaction’s effect on the Company’s financial results. yielded cash flow to the Company and the time in which it will be yielded is future forecast information, which assumes the signing of the agreement and completion of engagement with the third party under the said terms, and is also based on Company’s assumptions regarding the fulfillment of the suspending conditions for completion of the transaction.  This information may not be realized or be realized differently than expected, even if such agreement is signed and completed under the said terms, in the event that, inter alia, the Company’s said assumptions will be realized differently than expected.