Gazit Globe Expects Gain Of Approx. NIS 1 Bln From Equity One Merger Deal

(RTTNews) - Gazit-Globe (GZT, GZT.TO) announced its US subsidiary Equity One (EQY) has entered into a merger agreement with Regency Centers Corp. (REG). Gazit-Globe will be the largest shareholder in the merged company and will hold approximately 13.2% of the shares. The transaction will generate a net gain of approx. NIS 1 billion for Gazit Globe. As a result of the deal, the annual dividend from the merged entity will immediately increase by approx. 2.3% for all Equity One shareholders.

Gazit-Globe said the merger will create the largest high quality shopping center REIT in the US with a combined equity market cap of approx. $11.7 billion and enterprise value of approx. $15.6 billion.

Chaim Katzman, Chairman of Gazit-Globe and Equity One, said: "This is a major deal that will create the highest quality and largest shopping center company in the US. EQY shares acquired by REG at a premium of 13.7% to the market price is a reflection of the quality of EQY's assets and the faith of REG in the company's full potential."