Co-owners in AFI Development move date for transaction with 9.7% share packet to June
MOSCOW. May 3 (Interfax) - The timing of the acquisition of 9.7% in AFI Development by its main owner Africa Israel Investment, which is controlled by Lev Levaiev, has been moved to June, the developer said in a statement.
The acquisition was initialed planned for May but now it will take place at the end of June. In addition the second part of the transaction (Leviev's company has already acquired 2.96% of the share issue) has been divided into two stages.
As part of the first stage, Africa Israel will buy 1.61% in AFI for $20 million from its CEO and co-founder Alexander Khaldei. These funds will be placed in an escrow-account and presented to the seller after AFI published its results for the first quarter of 2011 (this is expected at the end of May).
During the second stage, Khaldei will sell the remaining 5.14% to Africa Israel for $64 million. The terms will remain the same in the second stage. The total transaction will come to $129 million as Africa Israel's stake will increase by 63.7%. Khaldei will continue to work as AFI Development's CEO.
Levaiev founded AFI Development in 2001 in order to implement developer projects in Russia. The company entered the Ukrainian market in 2008. At the start of May 2007, AFI held an initial public offering (IPO) in London which raised $1.4 billion.
AFI opened its biggest project in Russia in March - the AFIMALL City shopping and entertainment center in Moscow, which is180,000 square meters in size.
