LONDON (Alliance News) - Plaza Centers NV Monday said that its parent company, Elbit Imaging Ltd, has said that its Elbit Ultrasound (Luxembourg) BV/ S. a' r. l subsidiary has agreed to exercise its rights to take up its full portion under Plaza Centers' rights issue to raise EUR20.0 million.
In addition, Elbit Ultrasound has agreed to procure that it will subscribe for any unexercised portion of the rights offering, or additional shares, at EUR0.105 per share, subject to a back stop agreement with various affiliates of Davidson Kempner Capital Management LP.
Under this deal, according to the statement, Davidson Kempner is to agree to buy a proportion of the shares in place of Elbit Ultrasound, provided that what it owes to buy the shares is no less than the higher of EUR3.0 million or the amount required to acquire the additional shares. There is also an upper limit of EUR10.0 million or result in it acquiring a stake of 30% or more of the voting rights in the company.
If the price of the additional shares falls below EUR3.0 million, Plaza will have to increase the number of shares offered such that the shares acquired by DK are no less than EUR3.0 million.
By Samuel Agini; samagini@alliancenews.com; @samuelagini
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Plaza (PLAZ)