Kardan N.V., active in Real Estate, Water Infrastructure and Financial Services in emerging markets, announces that today the plan to purchase Kardan Debentures listed on the Tel Aviv Stock Exchange ('TASE'), up to an amount of 50 million, as announced on July 12, 2012, through its subsidiary GTC Real Estate Holding B.V. ('GTC RE') has been completed.
On December 15, 2011, Kardan announced a plan to repurchase, through its subsidiary GTC RE, debentures up to a maximum amount of 50 million. On July 17, 2012, this plan was completed. In this plan the Company repurchased 252,591,895 Debentures Series A for a total amount of NIS 243 million (approximately 50 million) which were represented in the Company's financial statements as a total liability of NIS 304 million (approximately 62 million).
Consecutively, on July 12, 2012, Kardan announced a new identical plan to again repurchase debentures up to a maximum amount of 50 million. Today, this plan has been completed, in which Kardan has repurchased 211,945,290 Debentures Series A and 120,222,513 Debentures Series B for the total amount of NIS 245 million (approximately 50 million), which were presented in the Company's financial statements as a total liability in the amount of NIS 401 million (approximately 82 million).
Through the repurchases of these two plans combined, the Company has reduced the corresponding liability by NIS 705 million (approximately 144 million).
The total profit on the plans initiated in December 2011 and in July 2012 amounted to 44.2 million, of which 9.4 million will be reported in the second quarter 2012 results of the Company as financial income, and 32.7 million in Q3 of 2012. A profit of 2.1 million was recognized in earlier periods.
Kardan has been repurchasing its debentures Series A and Series B, both listed on TASE, as of mid 2011 in line with the Company's focus to decrease the leverage on the holding and intermediate holding company levels.
The repurchases have mostly been funded by resources of Kardan. Taking into account the earlier made repurchases made in June through beginning August 2011, Kardan mainly through its subsidiary GTC RE - presently owns 47.5% of Debentures A and 12.6% of Debentures B.
The debentures have been purchased both through (daily) transactions executed on TASE and transactions outside of the stock exchange (over the counter transactions). It is estimated that execution of the repurchases will not result in any taxes payable.
On July 16 last, Maalot, the Israeli subsidiary of Standard & Poor's ("S&P") reported that it had changed the rating of the Company from ilBBB+ negative outlook into ilCC as well as for the Debentures Series A of the Company. However, Maalot also announced that immediately after Kardan would announce to have prematurely ended / finalized the Plan, S&P will change the rating to a new applicable rating.