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Kardan may return NIS 100 mln from recent bond offering to institutionals

Prospectus says funds would be returned should IDB takeover fail

Institutional investors who last week participated in Kardan's bond offering have asked the company to provide clarifications.

The prospectus stated that should the deal between Kardan (TASE: KRDN ) and IDB Holding Corporation for control in the IDB group fail to be completed by the end of 2002, Kardan will return NIS 100 million to the investors by January 2003.

TheMarker has learned that Kardan is considering returning this amount in 90 days, and that the funds will be placed with a trustee. Kardan said that 60 institutional investors participated in the offering.

On Sunday Kardan announced the cancellation of the deal for acquiring 23.6% in the IDB group for about $311 million. Kardan was to invest some $71 million. It is believed that the proceeds from the offering were intended for the deal.

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