ADO Group control struggle intensifies

Shari Arison photo: Golan Abochzira

The Dayan family and Apollo Global Management bought 5% more of ADO.

The struggle between the Dayan family, Apollo Global Management, and Shikun & Binui Holdings Ltd. (TASE: SKBN), controlled by Shari Arison, for control of ADO Group Ltd. (TASE: ADO) is intensifying. Sources inform "Globes" that the Dayan family and Apollo Global have acquired 5% more of ADO. It is believed that the shares were purchased from Menorah Mivtachim Holdings Ltd. (TASE: MORA).

The acquisition increases the holdings of the Dayan family and Apollo Global to 37% of ADO, while Shikun & Binui owns 40.1%.

In an off-floor transaction, Apollo Global and the Dayan family recently bought ADO shares from investment institutions, headed by Harel Insurance Investments and Financial Services Ltd. (TASE: HARL), which held 13.7% of ADO's shares. The IBI brokerage carried out these deals.

The deals were at a price of NIS 60 per share, while Shikun & Binui's offer to purchase was at NIS 56 per share. Shikun & Binui set a September 10 acceptance date for its offer to purchase 10% of ADO's shares. It is now unclear what will happen to this plan, and whether Shikun & Binui will take action to secure its status as the controlling shareholder in ADO. A struggle for control of the company is likely to ensue pitting Shikun & Binui against Apollo Global and the Dayan family, which made most of its money in German real estate.

Most of ADO's business is in Germany. The company's ADO Properties subsidiary handles its activity in Berlin, and its shares are listed on the Frankfurt Stock Exchange, where its market cap is €1.73 billion. ADO has a portfolio of over 20,000 housing units in Berlin (19,124 housing units as of the end of June).

Published by Globes [online], Israel Business News - www.globes-online.com - on August 31, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Shari Arison photo: Golan Abochzira
Shari Arison photo: Golan Abochzira
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