Tel Aviv-traded Kardan (TASE: KRDN ) yesterday raised some NIS 90 million in convertible bonds. The company had originally planned to raise NIS 60 million.
The index-linked bonds carry 6% maximum annual interest, and are convertible at 19 bonds per share. The issue was led by IBI Underwriting & Investments, and Gmul Sahar Underwriters.
Redemption of the bonds is in three years, in a single payment. Investors can redeem the bonds at the end of January 2003 should the takeover of IDB Holdings fail.
The proceeds of the bond issue will be used to finance the deal. Kardan was to pay IDB $315 million for 23.6% of IDB. LFG of the Lowy group acquire 29.9% of the Kardan subsidiary established for the acquisition.
Kardan has recently sold several holdings, such as Kardan Capital and computer retail chain Bug Multisystems. The moves were intended to generate cash for the IDB deal.