Kardan merger with GTC gets shareholder backing

The merger between Amsterdam and Tel Aviv-listed real estate firm Kardan and its GTC Real Estate unit has been approved. The proposal to merge the companies was passed at a extraordinary general meeting of shareholders in Kardan, GTC Real Estate and GTC last Thursday.

Kardan's management said that the merger will creates a larger holding company with a strengthened financial and equity position. 'In addition, the merger further increases the transparency of the Kardan group,' the company said in a statement. Kardan and GTC RE are registered in the Netherlands.

As a result of the merger, Kardan's holding in the real estate activities will increase from (directly and indirectly) 67% to 100%. All shareholders of GTC RE , except for Kardan, will receive shares in Kardan at a share exchange ratio of 0.81 Kardan share for each GTC RE share.

It is expected that the merger will become effective on 16 December 2008. On that date GTC RE will cease to exist and issuance of the new Kardan shares is envisaged. Kardan will apply for the admission to and the listing of the newly issued shares on Euronext Amsterdam and on the Tel-Aviv Stock Exchange (TASE).

Kardan is an international investment company based in Amsterdam with a focus on three sectors: 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. It had total assets at end-September 2008 of EUR 5.2 bn.