Kardan NV (TASE: KRNV;AEX:KARD) unit Global Trade Centre Poland SA (WSE:GTC) (GTC Poland) will invest $12.5 million, in two stages, to acquire 20% of Europort Ltd. (TASE:ERPT.B1), which is planning real estate projects in Russia and Ukraine.
GTC Poland will invest an initial $5.5 million for 10% of Europort, at a company value of $50 million, and will invest an additional $7 million for a further 10% of the company at a company value of $62.5 million. The second investment is contingent on Europort buying land in Russia or Ukraine for at least $5 million over the next 12 months. GTC Poland will make the investment through subsidiary, Emerging Investments III BV. This will be the first deal by Global Trade Centre Real Estate NV (TASE:GTC) in Ukraine.
In a separate development, GTC Poland subsidiary GTC Ukraine BV will acquire 49.99% of Europort subsidiary Europort Investments (Cyprus) I Ltd., which is planning a 120,000-square meter mixed office, commercial, logistics and commercial project in Odessa. GTC will provide a $12.6 million owners loan, $10 million of which will be used to repay an existing loan
GTC Poland has a market cap of $3 billion on the Warsaw Stock Exchange. Europort managing director Mordechai Kirschenbaum founded the company in 2007 with a group of investors. He owns 31% of the company. He was the developer behind Airport City Ltd. (TASE:ARPT) business park near Ben Gurion Airport. Other shareholders are a target=new href=http://www.idb.co.il/>IDB Holding Corp. Ltd. (TASE:IDBH) subsidiary Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS), with a 10% stake, France's Banque Societe Generale, with a 8.55% stake, Israel Discount Bank (TASE: DSCT), with 12%, and private investors.
Published by Globes [online], Israel business news - www.globes-online.com - on July 16, 2008
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