Elbit Imaging (EMITF) to Sell Interest in Gap (GPS) Franchisee
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Elbit Imaging Ltd. (Nasdaq: EMITF) has entered into an agreement with Gottex Models Ltd., for the sale of all its shares in Elbit Trade and all their interests in GB Brands, Limited Partnership ("GB Brands"), which is the franchisee of the Gap (NYSE: GPS) brand in Israel.
The purchase price to be paid by Gottex under the agreement is NIS 26 million, plus the agreed value of the Gap inventory as of the closing date, which is estimated to approximately NIS 14 million as of the date hereof, reflecting a total consideration of NIS 40 million. The said consideration is subject to adjustments based on the agreed value of the working capital attributed to the Gap activity as of the closing date.
The transaction is expected to close in February 2012, and is subject to approval of the Israeli Antitrust Authority as well as the satisfaction of certain other closing conditions.
The Company will continue to hold and manage its retail activities in Israel with respect to the MANGO-MNGTM brand. The MANGO brand is spread throughout Israel with 25 MANGO stores, which have experienced a significant improvement in their financial results in the past few months.
The purchase price to be paid by Gottex under the agreement is NIS 26 million, plus the agreed value of the Gap inventory as of the closing date, which is estimated to approximately NIS 14 million as of the date hereof, reflecting a total consideration of NIS 40 million. The said consideration is subject to adjustments based on the agreed value of the working capital attributed to the Gap activity as of the closing date.
The transaction is expected to close in February 2012, and is subject to approval of the Israeli Antitrust Authority as well as the satisfaction of certain other closing conditions.
The Company will continue to hold and manage its retail activities in Israel with respect to the MANGO-MNGTM brand. The MANGO brand is spread throughout Israel with 25 MANGO stores, which have experienced a significant improvement in their financial results in the past few months.
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