Amsterdam, June 30, 2016 - Kardan N.V. (‘Kardan’ or ‘the Company’), active in Real Estate, Water Infrastructure and Financial Services in emerging markets announces that - further to the announcements of January 15, March 6, June 30, and September 24, 2015, and June 3, 2016 – on June 30, 2016 the sale of the remaining 25% of the shares in the Chinese water infrastructure company Kardan Water International Group Ltd. (‘KWIG’) to China Gezhouba Group Investment Holding Co. Ltd. (‘CGGC Investment’) by Kardan’s indirectly held subsidiary Tahal Group Assets B.V. (‘Tahal Assets’) was completed (the ‘Transaction’).


The total consideration for the 25% stake amounts to USD 27.7 million, including interest as detailed in the agreement.
In addition, Tahal Assets has paid the taxes due on the sale of the 75% of KWIG shares. Therefore, according to the trust agreement that was signed, the amount of the tax deposit will be reduced to USD 1.7 million (from USD 10 million as previously announced), to cover the taxes due by Tahal Assets on the second phase of the transaction. This amount will be transferred from the funds already reserved by Tahal Assets from the proceeds of the first phase of the sale of KWIG. As a result no additional tax deposit is required from the consideration of the second phase of the Transaction.

The net consideration for this second phase of the Transaction (net of transaction costs) is estimated at approximately USD 26.9 million, and will be used by Tahal Assets for dividend distribution to its shareholders. Kardan intends to use the received funds for part repayment of its debentures, in accordance with the provisions of the Amended Deeds of Trust dated July 2, 2015.