Gazit-Globe sells 2.9 pct stake in Canada unit FCR for C$117 mln

Wed Jan 6, 2016 4:30am EST
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JERUSALEM Jan 6 (Reuters) - Israeli real estate developer Gazit-Globe said on Wednesday it sold a 2.9 percent stake in Canadian unit First Capital Realty (FCR) for C$117 million ($83 million).

The sale of 6.5 million shares was made on the Toronto Stock Exchange at C$18.0 per share. Upon completion of the sale, Gazit-Globe will hold 88.6 million FCR shares for a 39.3 percent stake.

Last week, it raised 604 million shekels ($153 million) in a share offering in Tel Aviv, saying it would use the proceeds to refinance its debt and for general purposes. A month ago, the company sold 4.2 million shares of U.S. unit Equity One in a secondary share offering.

"These actions will increase our financial flexibility and create a capital base for future investments," said Rachel Lavine, Gazit-Globe's chief executive.

($1 = 1.4090 Canadian dollars)

($1 = 3.9381 shekels) (Reporting by Steven Scheer)