Gazit Globe Announces The Merger Transaction Of Its US Subsidiary Equity One (NYSE: EQY) With Regency Centers Corporation (NYSE: REG)

The Merger Creates the Largest High Quality Shopping Center REIT in the US with an Enterprise Value of approx. US$ 15.6 Billion

The transaction will generate a net gain of approx. NIS 1 billion for Gazit Globe
  • Gazit-Globe will be the largest shareholder in the merged company
  • The transaction reflects a premium of approximately 13.7% on EQY shares              

TEL-AVIV, Israel, Nov. 15, 2016 (GLOBE NEWSWIRE) -- Gazit-Globe (NYSE:GZT) (TSX:GZT) (TASE:GZT), one of the leading global real estate companies focused on the ownership, management, acquisition, development and redevelopment of supermarket-anchored shopping centers in major urban markets, announced today that its US subsidiary Equity One (NYSE:EQY) has entered into a merger agreement with Regency Centers Corporation (NYSE:REG). The merger will create the largest high quality shopping center REIT in the US with a combined equity market cap of approx. US$ 11.7 billion and enterprise value of approx. US$ 15.6 billion.

Gazit-Globe will be the largest shareholder in the merged company and will hold approximately 13.2% of the shares. Chaim Katzman, Chairman of Gazit, who has until now served as Chairman of Equity One, will serve as Vice Chairman of the merged company. Two independent directors from Equity One board will also be added to the board of Regency. The share exchange transaction reflects a US$ 4.6 billion equity value for EQY and represents an approximately 13.7% premium (as of November 14, 2016). The transaction is expected to close in the first quarter or early in the second quarter of 2017, and is anticipated to generate a net gain of approx. NIS 1 billion for Gazit Globe. It is also subject to certain closing conditions, including shareholder approval of both companies.

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