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Transfer of Control of Shikun & Binui to the Saidoff Group Completed

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Transfer of Control of Shikun & Binui to the Saidoff Group Completed

The Saidoff Group completed the acquisition of control (47%) in Shikun & Binui from the Arison Group for NIS 1.1 billion

Naty Saidoff: "We will continue to develop operations in Israel and abroad"

PR Newswire

AIRPORT CITY, Israel, Aug. 7, 2018 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA), a global construction and infrastructure company headquartered in Israel, today announced the transfer of control of the Company from the Arison Group to the Naty Saidoff Group, led by American Businessman and Philanthropist Mr. Naty Saidoff. The Saidoff Group acquired the entire 47% stake of Arison Investments in the Company, for a total of NIS 1.1 billion.

Shikun & Binui is Israel's leading real estate and infrastructure company, currently trading at a market valuation of NIS 2.8 billion.

The Company recently announced the win of a tender for the construction and operation of the Israel Defense Forces' Technological Complex, together with Africa Israel Investments for NIS 2 billion, as well as three additional infrastructure projects in Israel amounting to NIS 300 million. In addition, the Company completed a portfolio transaction, establishing a strategic partnership with a number of leading institutional investors that at the first phase, will hold and manage the Carmel Tunnels and the Northern Lanes Project in Israel. As a result of this transaction, the Company recorded a profit of between NIS 250-300 million and generated a cash flow of NIS 588 million. The Company also reported the sale of its share in IKEA store building at Kiryat Ata, Israel at a profit of between NIS 83-88 million, and the completion of the expansion of a bond series, totaling NIS 500 million.

Mr. Naty Saidoff commented, "I am pleased to join the leading construction and infrastructure group in Israel, and I am confident that together with its management and employees, we will continue to develop our operations in Israel and internationally. My goal is to maintain managerial stability at the Company, while placing high priority on continuity of professional and financial activity across all the countries in which Shikun & Binui operates. Shikun & Binui is a strategic holding in the Saidoff Group and we will act in full force to ensure that it will continue and thrive in the future. The transfer of control in the Company was conducted in the best possible way, thanks to collaborative work with Shari Arison and Efrat Peled, as well as all the professional staff at Arison Investments."

Shari Arison, Businesswoman and Philanthropist commented, "Our vision and effort over the years created a unique company, a leading international company, a company with the vision to provide an added value for all people, society and our environment"

Continued Arison, "I would like to thank Efrat Peled, Chairman and CEO of Arison Investments and an outgoing Director at Shikun & Binui, Moshe Lachmani, Chairman of the Board of Directors at Shikun & Binui, Ido Stern, outgoing Director and member of the management team at Arison Investments, Directors Nir Zachlinsky and Tal Atzmon, as well as to all the management, employees in Israel and around the world, retirees and all our partners throughout this journey."

Mr. Moshe Lahmani, commented: "A new era is beginning at Shikun & Binui, and we see the control passing to a pair of good hands. The Arison Group has been with Shikun & Binui throughout the past 22 years in which we became the leading real estate and infrastructure company in Israel, as well as a global company with global business operations. Now, we are turning a new page and I am thrilled to accede to the request of the Saidoff Group to continue leading our Company, while leveraging my experience and my many years of familiarity with its operations. The Company will continue to act to realize its business and strategic goals. I would like to personally thank each one of the thousands of employees in Israel and around the world for their ongoing and challenging work, as well as commitment and results, which have enabled us to continue being a unique and successful flagship company within the Israeli economy."

About Naty Saidoff

Mr. Naty Saidoff is an enthusiastic Zionist, contributing to Jewish and Israeli organizations. He is the founder and chairman of the Israel Support Festival 'Celebrating Israel', the largest Jewish festival in the United States. Saidoff is also a member of the American Jewish Committee and a member of the Board of Directors of Stand with Us, which supports Israel and fights BDS activity.

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 into account that past data do not necessarily indicate future performance.

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

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SOURCE Shikun & Binui Ltd.

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