Kardan Land China signs term sheet to raise €40 million (NL/CN)
Monday 2 January 2012
Kardan N.V. announces that its holding for the Chinese real estate operations, Kardan Land China Ltd. has signed a term sheet with an investor, to increase its capital by RMB 333.3 million (approximately €40 million, at the current exchange rate).
After closing of this transaction the investor will hold 10% of the shares of Kardan Land. The transaction reflects a value of Kardan Land amounting (at the current exchange rate) to €363 million before the increase of capital and €403 million after the capital increase.
The capital increase, which is in line with Kardan’s strategy to fund its activities at the intermediate or subsidiary levels, will enable Kardan Land to further develop its Chinese real estate operations.
The transaction is subject to, among others, due diligence, conclusion of the final agreements and receipt of the necessary consents and approvals, including both parties’ corporate approvals. A final agreement between the parties is expected to be concluded by the end of the first quarter of 2012.
The accounting implications of the intended transaction are not yet known.