As control battle continues, ADO buys in Berlin

ADO Properties  photo: company website

The company bought 1,298 housing units and 60 commercial units in Berlin for NIS 885 million.

In the midst of a struggle for control of the company, which is attracting a great deal of attention in the capital market, income-producing real estate company ADO Group Ltd. (TASE: ADO) continues to expand its portfolio of properties. Control of ADO is being disputed by Shikun & Binui Holdings Ltd. (TASE: SKBN), which owns 40.1% of ADO's capital, and the Dayan family and Apollo Global Management, which jointly own 37% of ADO's capital.

ADO today announced that its ADO Properties subsidiary had completed the purchase of 1,298 residential housing units and 60 commercial units in Berlin for €211 million (NIS 885 million). Following the deal, subject to a number of suspending condition, ADO's portfolio of properties will grow to 22,000 housing units in Berlin.

Talks on joint control

Shikun & Binui, controlled by Shari Arison, last month submitted a partial offer to purchase for an additional 10% of ADO Group's shares at NIS 56 per share, with the aim of releasing profits in Shikun & Binui and enabling the company to distribute these profits. The measure turned out badly for Shikun & Binui, however, because it found itself neutralized during the period of the offer, as Apollo Global and the Dayan family quickly purchased ADO shares owned by investment institutions.

As a result, Shikun & Binui's offer became essentially irrelevant, following a jump in the share price to NIS 65, reflecting a NIS 1.7 billion market cap for ADO Group). Shikun & Binui, however,has extended the deadline for its offer until September 25, following talks in recent weeks with representatives of Apollo Management and the Dayan family for joint control of ADO.

Apollo Global is a large private equity fund active in the German real estate market, while the Dayan family's business has grown in recent years, mainly as a result of its activity in German real estate, including the expansion of its activity in real estate and hotels.

Published by Globes [online], Israel Business News - www.globes-online.com - on September 17, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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ADO Properties  photo: company website
ADO Properties photo: company website
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