Kardan Israel, a 73.6% subsidiary of Dutch-registered international investment company Kardan, has announced it is to write off about EUR 45 mln as a result of the merger with its GTC Real Estate unit.
Kardan Israel, a 73.6% subsidiary of Dutch-registered international investment company Kardan, has announced it is to write off about EUR 45 mln as a result of the merger with its GTC Real Estate unit.
The write down stems from Kardan Israel's exchange of its stake in GTC RE into 9.7% of shares in Kardan. The loss will not have any impact on Kardan's net result.
But as a result of the merger Kardan expects to book a gain, which will be equal to the difference between the fair value of the shares issued by Kardan to the shareholders of GTC RE and the value of the acquired part of the (minority) shares in GTC RE shareholders' equity. The size of the profit is subject to the final shareholders' equity of GTC RE at the date of the merger, to be determined as part of the preparation of the Financial Statements 2008.
Amsterdam and Tel Aviv-listed Kardan is an international investment company based in Amsterdam with a focus on real estate, financial services and infrastructure. The company is primarily active in emerging markets in Central and Eastern Europe and China, where it conducts most of its activities.
