Germany's Adler Real Estate to buy ADO Group for 708 mln euros
Germany’s Adler Real Estate has agreed to buy ADO Group, a
Tel Aviv-listed shareholder in ADO Properties, for 708 million euros ($777 million),
the companies said on Monday.
Following the acquisition, Adler will hold a 33% stake in
ADO Properties, a 4.4 billion euro German-listed residential real estate
company focused on Berlin. ADO Group will be delisted from the Tel Aviv Stock
Exchange.
The 708 million euro value represents an 83% premium on ADO
Group’s closing share price on Sunday. Shares were up 60.5% in Tel Aviv in
late-morning trade.
Adler said the deal will be funded by a combination of a
rights issue, fully guaranteed and backstopped by Adler anchor shareholders,
cash from disposals of non-yielding assets and financial debt.
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