Within the approved transaction, all real estate property (and related leases) held by BSIP and BSIP's subsidiaries would be transferred to BSRE. Most of such real estate property will be leased back by BSRE to BSIP for its retail activities under terms similar to the existing lease agreements between BSRE and BSIP, and the Company, regarding other real estate assets. The periods of these existing lease agreements would be extended to match the period of the new lease agreement - 10 years from the transfer of the BSIP real estate assets to BSRE, with an additional option period of five years exercisable by BSIP.
The sale of BSIP's real estate property (and related leases) to BSRE
would be for an aggregate consideration of approx.
The lease agreement between BSRE and BSIP would contain terms similar to
the existing lease agreements, which provide for annual rent for property
used for supermarkets to be the higher of 2% of the annual turnover of that
store or 9% of the amount paid by BSRE to purchase the underlying real estate
of that store (excluding consideration paid for certain unused building
rights), plus amounts invested by BSRE in the asset, reduced by certain costs
and payments and increased according to
The transfer of real estate properties, the lease agreement and closing of the transactions are subject to approval by BSRE shareholders. According to the Israeli Companies Law, such approval is valid only if either (1) the majority of shares voted at the meeting in favor of the transaction includes at least one third (1/3) of the shares of shareholders who do not have any personal interest in the transaction who are participating in the voting at the meeting, in person or by proxy, without taking into account abstentions, (2) if the total number of shares voted against the transaction by shareholders who do not have any personal interest in the transaction does not exceed one percent (1%) of the aggregate voting rights in the company.
Blue Square-Israel Ltd. is a leading retailer in
Forward Looking Statements
The statements contained in this release, except for historical facts,
which are forward-looking with respect to plans, projections, or future
performance of the Company, involve certain risks and uncertainties.
Potential risks and uncertainties include, but are not limited to, risk of
market acceptance, the effect of economic conditions, the impact of
competitive pricing, supply constrains, the effect of the Company's
accounting policies, as well as certain other risks and uncertainties which
are detailed in the Company's filings with the Securities and Exchange
Commission, particularly the Annual Report on Form 20-F for the year ended
Contact: Blue Square-Israel Ltd. Elli Levinson-Sela General Counsel & Corporate Secretary Telephone: +972-3-9282670 Fax: +972-3-9282498 Email: ellils@bsi.co.il
SOURCE Blue Square Israel Ltd