Kardan Real Estate Enterprise And Development (TASE:KRDR) this morning announced cessation of negotiations to sell a 15.6% stake in the Dutch firm GTC International to Azorim Properties (TASE:AZRM), which is controlled by tycoon Nochi Dankner.
Azorim was to have bought the GTC stake through its subsidiary Kinsdle Holdings BV for around $28 million. The deal would also have given Azorim an option to buy another 4% of GTC at a later stage for $8.7 million.
GTC International, in which Kardan Real Estate holds a 58.8% interest, controls Kardan's property assets outside Israel. Kardan Real Estate is a subsidiary of the Kardan (TASE:KRDN) investment company.
Azorim Properties is controlled by Ganden Holdings, which is controlled by businessman Nochi Dankner. The stake in GTC was to have cost Azorim about $28 million.
The cessation of talks about GTC has killed off another deal in the making: Kardan Real Estate planned to buy back a 20.8% share interest in itself that Ganden held for about $21.5 million. That deal would have evaluated Kardan Real Estate at $103 million, more than double its present market cap.
Kardan Real Estate ended the first quarter with revenues of NIS 80.2 million, down 16% from the parallel quarter of 2001. It netted NIS 1.3 million, compared with losing NIS 1.2 million in the first quarter of 2001.