Kardan CEO Shouky Oren: The sale of GTC Poland is a major step for Kardan in dealing with its liquidity situation.
Kardan NV (TASE: KRNV;AEX:KARD) has sold its 27.75% stake in Globe Trade Centre SA (WSE:GTC) (GTC Poland) to Lone Star Real Estate Fund III for €160 million. The sale price reflects a company value for GTC Poland that is 1.4% above its average market cap on the Warsaw Stock Exchange over the past three months.
Kardan booked GTC Poland at a value of €194 million at the end of June. The accounting consequences of the purchase agreement on company's financial results for the third and fourth quarters of 2013 are still under review.
Kardan decided to sell GTC Poland mainly because of its liquidity needs for its pending bond principle and interest payments in February 2014 and February 2015.
Kardan CEO Shouky Oren said, "We are completing with great success a complex sale in an especially challenging market. The sale of the shares in GTC Poland is a major step for Kardan in dealing with its liquidity situation. Kardan will continue to focus on real estate and water infrastructures in emerging markets, which are expected to have faster growth than developed markets."
Published by Globes [online], Israel business news - www.globes-online.com - on November 17, 2013
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