The board of Kardan NV (TASE: KRNV;AEX:KARD) is mulling absorbing subsidiary Global Trade Centre Real Estate NV (TASE:GTC). Kardan said that such a merger would strengthen the shareholders' equity and value of the two companies by creating a larger holding company that specializes in emerging markets.
Kardan added that a merged company would be able to develop its business and expand its international sources of financing revenue beyond what each company can raise independently.
Kardan directly and indirectly owns 68.6% of GTC Real Estate, which handles Kardan's international property development business. GTC operates in Eastern Europe through Global Trade Centre Poland SA (WSE:GTC) (GTC Poland) and its subsidiaries. The company also owns properties in Western Europe, does business in China through GTC Real Estate China Ltd. and its partner, Lucky Hope, and recently signed its first memorandum of understanding (MOU) to develop a project in India.
Kardan added that it plans to publish a shelf prospectus by the end of May on the basis of its consolidated financial for 2007 for the raising of capital.
Kardan and GTC both rose 3.7% by midday, the only stocks on the Tel Aviv 25 index to show gains, and bucking the general market trend.
Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2008
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