Kardan NV (TASE: KRNV ;AEX:KARD) is tightening its grip on GTC Real Estate NV (TASE:GTC), which operates in Eastern Europe. Kardan today announced that it would acquire the stake owned by IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Azorim Investment, Development and Construction Ltd. (TASE:AZRM) in Global Trade Centre SA (WSE:GTC) (GTC Poland) and the latter’s subsidiaries operating in Eastern Europe and the Balkans for $122.6 million.
Under the terms of the deal, either GTC Real Estate or GTC International NV will acquire Azorim’s 24.5% stake in GTC International for $91.6 million. When the deal is closed, GTC Real Estate will have full ownership of GTC International, which owns 50.7% of GTC Poland.
In addition, Azorim will sell to GTC Poland and two other shareholders its stakes in four of five of GTC Poland’s subsidiaries operating in Serbia, Croatia, Hungary, and Romania, for $30 million, including $19.4 million in cash and the rest by repaying Azorim’s loan to GTC companies. Azorim owns 20-22% in each of these subsidiaries. When the deal is closed, GTC Poland will own an average of 95% in each of these subsidiaries.
The transactions will not be carried out directly with Azorim, but through ADRI International BV, which holds Azorim’s stakes in GTC.
Published by Globes [online], Israel business news - www.globes.co.il - on October 11, 2005