BATM Advanced Communications' fully owned subsidiary BATM ESHBOLOT has entered into an agreement to sell a wholly owned building situated at Hod Hasharon, Israel.
The building housed the administrative function of the Group and the personnel will be moved to a neighboring newly erected building.
The building has been sold to take advantage of the high real-estate prices in Israel.
Under the terms of the agreement, BATM will receive a total consideration of 34 million NIS (approximately $8.9 million) which compares to the building's book value of 22.2 million NIS (approximately $6.0 million) at 31 August 2016.
As a result, the profits attributable to the transaction amount to NIS11.8 million (approximately $2.9 million). Under the sale agreement, NIS5.1 million is payable on signing of the agreement and the remainder is due 60 days thereafter.
Net proceeds of the sale will be added to the cash balance and be used as part of the Group's efforts to grow the business.
At 9:08am: (LON:BVC) BATM Advanced Communications Ltd share price was +0.38p at 18.13p