Shikun & Binui Completes Formation of Investor Group to Acquire Part of its Rights in the Carmel Tunnel & North Roads Projects

AIRPORT CITY, Israel, Nov. 20, 2017 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA) today announced that in continuation of the Immediate Report it submitted on November 5, 2017 (#2017-01-096532) regarding: 1) the offers it had received under the framework of the Rights Sale process that it had initiated in relation to its holdings in the Concessionaire of the Carmel Tunnels Project ("Carmelton"), the North Roads Upgrade, Operation & Maintenance Project ("North Roads") and 2) the limited-partnership structure that it created for the purpose of the Rights Sale transaction, in which the investors will serve as limited partners and the controlling partner (Shikun & Binui) will serve as the General Partner; the Company is pleased to announce that on last Thursday (November 17, 2017) the Limited Partner Group was formed (such including institutional investors).

Additionally, a value of approximately NIS 580 million was established for the rights to be acquired, which includes 45% of the Company's rights in Carmeltun (out of the Company's 50% holding in the Concessionaire) and 40% of the Company's rights in North Lanes (out of the Company's 60% holding).

If the deal is completed and the rights are sold as proposed, the Company's profit from the deal will total NIS 250-300 million. Completion of the deal is dependent, among other things, upon the receipt of third-party approvals, including from the regulatory authorities related to the projects and their financial backers. There is no certainty that the deal will be completed.

About the Shikun & Binui Group

The Shikun & Binui Group is a global construction and infrastructure company that operates in Israel and internationally in seven segments: 1) infrastructure and construction contracting outside of Israel; 2) infrastructure and construction contracting within Israel; 3) real estate development within Israel; 4) real estate development outside of Israel; 5) renewable energy;and 6) concessions. The Group's activities focus on large, highly complex projects carried out for entities in private and public sectors with a focus on sustainability.

This summary announcement was prepared solely for the convenience of the reader and does not replace Shikun & Binui Ltd.'s (hereafter – "the Company") full report.  The information contained in this announcement is, by its nature, incomplete. All of its contents are provided as a supplement to the Company's report, and are subject to the declarations therein stated.  This announcement includes forecasts, assessments, estimates and other information relating to the Company or its subsidiaries, or to other parties or to future events and matters, the extent of whose realization is not certain and is not under the sole control of the Company (forward-looking information, as defined in the Securities Law-1968).  The key facts and data serving as the basis for this information are facts and data, among others, related to the current status of the Company and its businesses, facts and data relating to the current status of the operating segments in which the Company engages in its areas of operation, and other macroeconomic facts and data known to the Company on the preparation date of this presentation.

It is understood that forward-looking information does not constitute a fact and is based solely on subjective assessments.  Forward-looking information is uncertain and for the most part, is not under the Company's control.  The realization or non-realization of the forward-looking information will be influenced, among others, by the risk factors that characterize the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations.  The Company's future results and achievements could differ significantly from those presented in this presentation.  The Company is not obligated to update or modify the said forecast or assessment, and is not obligated to update this announcement.  This announcement does not constitute an offer to purchase the Company's securities or an invitation to receive such offers.  An investment in securities in general, and in the Company in particular, carries risk.  One must take

IR Contacts:

Company
Inbal Uliansky           
+972-3-6301058
inbal_u@shikunbinui.com

External IR
Ehud Helft
GK Investor Relations
+1-617-418-3096
shikunbinuni@gkir.com