Kardan increases its stake in Real Estate activities
Amsterdam, 11 October 2005 - Kardan N.V. (Kardan) announces that through its real estate subsidiaries GTC Real Estate N.V. (GTC RE) and Globe Trade Centre S.A. (GTC Poland) it significantly increases its holdings in the GTC group companies. GTC RE has signed a share purchase agreement with ADRI International B.V. (ADRI) for the purchase of ADRI s 24.5% stake in GTC International B.V. (GTC-I) for a total consideration of USD 91.6 million. The shares will be purchased by GTC RE and/or GTC-I. This agreement follows that of August 2005, when GTC RE increased its holdings in GTC-I to 75.5% by purchasing shares in GTC-I from a Deutsche Bank subsidiary and other minority shareholders.
Following the completion of this transaction, GTC RE will hold 100% of GTC-I, which is the controlling shareholder (51%) of GTC Poland.
At the same time, GTC Poland signed a share purchase agreement with ADRI to purchase ADRI’s shares in the subsidiaries GTC Hungary, GTC Serbia, GTC Romania and GTC Croatia for a total consideration of approximately USD 19.4 million. Upon closing GTC Poland will increase its stake in these subsidiaries to approximately 97% in each of GTC Hungary, GTC Serbia and GTC Croatia and to approximately 94% in GTC Romania.
Both transactions are scheduled to be completed by 15 December 2005.
Concurrently, ADRI agreed to provide GTC RE a loan in the amount of USD 50 million. As a security to the loan, shares of GTC Poland with a market value equal to 120% of the outstanding loan balance will be pledged. GTC Poland s current market cap is approximately USD 820 million.
Kardan believes these transactions present a great opportunity to increase its involvement in the real estate markets of the region and will enable it to introduce new partners for new projects on a country by country basis.
