Kardan Water to raise �62m for Chinese projects

Kardan NV (TASE: KRNV;AEX:KARD) unit Kardan Water International Group (HK) Ltd. has signed a memorandum of understanding (MOU) with an international infrastructure fund to invest �62 million in the company. The investment is to further develop the company's Chinese water infrastructure operations. The investor will acquire a 39.5-42% stake in Kardan Water, subject to its meeting operational targets in 2013-15.

Kardan NV holds Kardan Water through Tahal Group International BV. Kardan Water was founded in 2007, and currently operates ten sewage treatment, water treatment, and water supply plants, and is building another sewage treatment plant.

Kardan NV has been going through trying times, including a 75% drop in its share price over the past 12 months, and its market cap has plunged to NIS 250 million from NIS 6.3 billion in 2007. The company's bond debt totals NIS 2.5 billion, and the yield has soared to 40%.

Published by Globes [online], Israel business news - www.globes-online.com - on July 9, 2012