Kardan, active in Real Estate, Financial Services and (Water) Infrastructure announces that it has reached an agreement with Israel Discount Bank (IDB) to buy back the stake of 11% IDB holds in Kardan Financial Services B.V. (KFS), the holding company of its financial services activities. After the transaction, Kardan and management of KFS will own 100% of the shares of KFS. The purchase price amounts to EUR 38.5 million and is payable in two instalments. The first instalment amounting to € 30 million is payable upon closing; the second instalment of € 8.5 million is due after 7 years and bears no interest.

The acquisition underlines Kardan’s belief in the future growth of the financial services industry in CEE/CIS countries. Part of the agreement is that Kardan will grant IDB an option to repurchase a 5% stake in KFS during the next six years, at a price reflecting a valuation of KFS of € 386 million plus 5% interest from the third year. Furthermore IDB approved new credit facilities for Kardan group in amounts in excess of the purchase price. It is expected that the transaction will be closed before the end of March 2009.