Israel based global construction and infrastructure firm Shikun & Binui Ltd. has recently confirmed that the company has signed an agreement and an option agreement for selling the shares of ADO Group Ltd. (ADO), as reported by the firm earlier.
Apparently, the company has entered into an agreement for selling 2,751,200 ADO shares, priced at NIS 88 per share of ADO to a legal entity, EPF Acquisition Co 86 S.a.r.l, which is reportedly managed by legal entities relating to Apollo Global Management LLC.
Further from the reports, completing the additional acquisition transaction is subjected to various preconditions, which includes completing sale of an additional 20 per cent of ADO shares by the company in 120 days of the agreement’s signing date, and the receipt of approval from the Antitrust Authority in Germany.
Sources familiar with the matter cited that, if and to the extent that Shikun & Binui concludes the transactions for sale of 30 per cent of ADO shares, the company would be receiving total consideration of NIS 720 million as well as record a pre-tax profit of NIS 480 million. This would be on the basis of assumption that the average price of each ADO share would be NIS 87, across the transactions.
In the event of Shikun & Binui partially waiving the preconditions for additional purchase transaction and the purchase transaction, the company could only be selling 20 per cent of ADO shares, on the basis of same price assumption. Then, the total consideration would be around NIS 480 million, along with a NIS 320 million of pre-tax profit to be recorded, sources further said.
Purportedly, since the additional purchase agreement coming into force is contingent on several preconditions, it can not be guaranteed that this would be completed and/or take effect and that any sale of the shares of ADO would be made by the company.
For the uninitiated, the Shikun & Binui Group operates in Israel and internationally in various segments, which include real estate development, renewable energy, concessions and infrastructure and construction contracting.