Sale of Property

RNS Number : 2167Y

BATM Advanced Communications Ld

04 December 2017

 

LEI: 213800FLQUB9J289RU66
 

4 December 2017

BATM Advanced Communications Limited

("BATM" or "the Group")

Sale of Property

BATM Advanced Communications Limited (LSE: BVC), a leading provider of real-time technologies for networking solutions and medical laboratory systems, is pleased to announce that its fully-owned subsidiary BATM Mekarkein Ltd., a real-estate management company of the Group, has entered into an agreement to sell a wholly-owned 5,757m² building situated at Yokneam, Israel. The building, which BATM has owned since it was constructed 17 years ago, housed R&D and operational functions of BATM as well as some third-party tenants. Following the sale, BATM will lease 2,027m² of the building to accommodate these business functions. The building has been sold to take advantage of the increased value of real estate in Israel as well as to provide the Group with flexibility to meets its evolving property requirements.

Under the terms of the agreement, BATM will receive a total consideration of NIS 34 million (approximately $9.7 million), which compares with the building's book value of NIS 13.5 million (approximately $3.8 million) at 3 December 2017. As a result, the profits attributable to the transaction amount to NIS 20.5 million (approximately $5.9 million). Pursuant to the sale agreement, NIS 13.6 million is payable on signing of the agreement and the remainder during 2018.

Net proceeds of the sale will be added to the cash balance and be used as part of the Group's efforts to grow the business.

Enquiries:

BATM Advanced Communications
Dr Zvi Marom, Chief Executive Officer	[phone]
Moti Nagar, Chief Financial Officer
Shore Capital
Mark Percy, Anita Ghanekar	[phone]
Luther Pendragon
Harry Chathli, Claire Norbury	[phone]

The information communicated in this announcement is inside information for the purposes of Article 7 of Regulation 596/2014.

 

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