Elbit Imaging Begins Talks For Sale Of Operation Of Mango Retail Stores

(RTTNews) - Elbit Imaging Ltd. (ESLT) said that following its earlier announcement on September 29, 2014, that its subsidiary, Elbit Fashion Ltd., received from PUNTO FA, S.L written notice of its plan not to extend the term of the franchise rights of Elbit Fashion for operation of the "Mango" retail stores in Israel, that Elbit Fashion and the firm are negotiating with Fox-Wisel Ltd. and Punto the purchase of the operation of the Mango retail stores by Fox-Wisel. The consideration expected under the transaction is projected at around NIS 28 million in addition to the price of Elbit Fashion's inventory that would be transferred to Fox-Wisel.

The talks are expected to be consummated at the end of November 2014. The transaction closure would be conditioned upon the approval of the Israeli Antitrust Authority as well as the satisfaction of certain conditions precedent.