The Dayan family agreed to acquire Africa Israel Hotels, Ltd. from Africa-Israel Investments Ltd (TASE:AFIL) and Netz Hotels Ltd (TASE:NZHT) (sellers) for approximately ILS 410 million on July 16, 2017. The consideration is subject to adjustments in respect of working capital and settlement of Africa Israel Hotels' debts to banks. In a related transaction in which Africa Israel Hotels, Ltd.'s sale of Crowne Plaza Jerusalem to Dayan family, will be cancelled to fulfill this new agreement. Africa Israel Hotels, Ltd. generated revenue of ILS 400 million and loss of ILS 14 million for the year ended December 31, 2016. Transaction is subject to consummation of due diligence and approval of director general of antitrust authority. As on September 6, 2017, an addendum to the agreement was signed, cancelling all the compensation and indemnity relief to which Dayan family was entitled under the agreement, against payment of a total of ILS 14.5 million which would be deducted from the amount of the consideration, and that in various cases the sellers would be entitled to be indemnified by the Dayan family. Furthermore, several additional conditions precedent for the transaction closing were added in the addendum.

The Dayan family completed the acquisition of Africa Israel Hotels, Ltd. from Africa-Israel Investments Ltd (TASE:AFIL) and Netz Hotels Ltd (TASE:NZHT) for approximately ILS 270 million on October 18, 2017. At closing, ILS 260 million was paid in cash. ILS 17 million was deducted from the amount of the consideration (consideration for the release), in lieu of the amount of ILS 14.5 million as was agreed to in the addendum to the agreement. At closing, ILS 260 million was paid in cash which was the balance of the consideration of the agreement, after deducting the consideration for the release, after deducting the amount remaining in the trust account, and after deducting additional amounts based on a reconciliation between the parties, including an initial reconciliation in respect of Africa Israel Hotels' working capital. ILS 11 million remained in the trust account to secure various payments that Africa Israel Hotels might be obligated to cover in respect of employers' levies and various payments to authorities, and to secure Netz Hotels' share in the obligation to discharge the customers' debts to Africa Israel Hotels.