TEL-AVIV, ISRAEL–(Marketwired – March 22, 2017) –
NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR DISSEMINATION IN THE UNITED STATES
Gazit-Globe Ltd. (NYSE:GZT)(TSX:GZT)(TASE:GZT) (“Gazit-Globe” or the “Company”), one of the leading global owners, developers and operators of supermarket anchored shopping centres in major urban markets, announces today that it has completed its previously-announced sale of 9,000,000 common shares (the “Shares”) of First Capital Realty Inc. (“First Capital Realty”).
The Shares were indirectly sold by the Company through its wholly-owned subsidiary, Gazit Canada Inc., in a secondary offering on a “bought deal” basis to a syndicate of underwriters in each of the Provinces of Canada pursuant to a short form prospectus of First Capital Realty dated March 13, 2017 (the “Secondary Offering”). The Shares were sold at a price of $20.60 per Share for total gross proceeds to the Company of approximately $185 million. The Shares sold by the Company represent approximately 3.7% of the issued and outstanding Shares of First Capital Realty.
The Company has also granted to the underwriters an over-allotment option to purchase from the Company up to an additional 1,350,000 Shares, on the same terms as the Secondary Offering, exercisable in whole or in part at any time for a period of up to 30 days following closing of the Secondary Offering (the “Over-Allotment Option”).
Prior to completion of the Secondary Offering, the Company beneficially owned and exercised control or direction over 88,636,749 Shares, representing approximately 36.4% of the issued and outstanding Shares of First Capital Realty. Following completion of the Secondary Offering, the Company now beneficially owns, and exercises control or direction over, 79,636,749 Shares, representing approximately 32.7% of the issued and outstanding Shares of First Capital Realty (or 78,286,749 Shares representing approximately 32.1% of the issued and outstanding Shares of First Capital Realty if the Over-Allotment Option is exercised in full).
Gazit-Globe intends to review its investment in First Capital Realty on a continuing basis. Depending on various factors including, without limitation, First Capital Realty’s financial position, the price levels of the securities of First Capital Realty, conditions in the securities markets and general economic and industry conditions, Gazit-Globe’s business or financial condition and other factors and conditions Gazit-Globe deems appropriate, Gazit-Globe may in the future take such actions with respect to its investment in First Capital Realty as Gazit-Globe deems appropriate including, without limitation, acquiring, converting, selling, or otherwise disposing of securities of First Capital Realty. In addition, Gazit-Globe may formulate other purposes, plans or proposals regarding First Capital Realty or any of its securities to the extent deemed advisable in light of general investment and trading policies, market conditions or other factors or may change its intention with respect to any and all matters referred to in this news release. As a result of the disposition of the Shares, Gazit-Globe will deconsolidate First Capital Realty from its financial statements from the date of the sale.
An early warning report will be filed by the Company in accordance with applicable securities laws and will be available on SEDAR at www.sedar.com or may be obtained directly from Alexandra Correia, Corporate Secretary of Gazit Canada Inc. upon request at King Liberty Village, 85 Hanna Avenue, Suite 400, Toronto, Ontario, M6K 3S3, (416) 504-4114.
First Capital Realty’s head and registered office is located at King Liberty Village, 85 Hanna Avenue, Suite 400, Toronto, ON M6K 3S3.
Gazit-Globe is a global owner, developer and operator of high quality necessity-driven supermarket-anchored retail properties in urban markets. Gazit-Globe is listed on the New York Stock Exchange (NYSE:GZT), the Toronto Stock Exchange (TSX:GZT) and the Tel Aviv Stock Exchange (TASE:GZT) and is included in the TA-35 index in Israel. As of September 30, 2016, Gazit-Globe owns and operates 427 properties in more than 20 countries, with a gross leasable area of approximately 70 million square feet and a total value of approximately US$22 billion.