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Kardan divesting more holdings to pay for IDB deal

Company announces sale of Bug Multisystems chain at NIS 7 million loss

Tel Aviv-traded Kardan is divesting more holdings in order to finance the purchase of a 23.6% interest in IDB Holding Corporation for $314 million. The company today announced a NIS 7 million capital loss from selling its 83.8% interest in Bug Multisystems, a chain of computer and software stores.

Kardan did not disclose the identity of the buyer or the amount of the deal. Ma'ariv today reported that Bug was sold to the Modan publishing house.

Kardan recently sold its stake in Kardan Capital Investments to Migdal Insurance for NIS 78 million, generating a NIS 24.6 million capital gain. Kardan also sold its interest in Endan Systems Management & Computing, posting NIS 13 million capital gains.

Several days ago Kardan announced the sale of a 20% equity interest to LFG Holdings, a company belonging to the Australian family Lowy, for $47.5 million.

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