Gazit reduces ownership in First Capital Realty by way of a C$742M share repurchase and a C$453M bought deal secondary offering

Date Closed

April 11, 2019

Lead Office

Toronto

Value

1.19 Billion CAD

On April 16, 2019, Gazit-Globe Ltd. (“Gazit”) and First Capital Realty Inc. (“FCR”) completed their previously announced share repurchase transaction pursuant to which FCR purchased for cancellation 36 million of its common shares from Gazit at a price of C$20.60 per common share, for aggregate gross proceeds to Gazit of approximately C$742 million. In addition, on April 11, 2019, Gazit completed a bought deal secondary offering of common shares of FCR held by Gazit, represented by installment receipts, for aggregate gross proceeds to Gazit of approximately C$453 million. As a result of these transactions, Gazit’s ownership of FCR was reduced from 31.3% to approximately 9.9%.

The completion of these transactions was in line with Gazit’s strategy to decrease its stake in mature public equity investments, reduce leverage, and increase Gazit’s direct real estate holdings.

Gazit is an Israel-based global real estate company focused on the ownership, management and development of retail and mixed use properties in North America, Brazil, Israel, northern, central and Eastern Europe, located in urban growth markets.

FCR is a Canadian owner, developer, and operator of supermarket and drug store anchored shopping centres.

McCarthy Tétrault advised Gazit with a team led by Robert Hansen that included Deandra Schubert, Michael Eldridge and Claire Lehan (Business), Gabrielle Richards and Kabir Jamal (Tax), and Paul Steep (Litigation).

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