Germany's Adler Real Estate to buy ADO Group for 708 mln euros

Adler Real Estate AG

23/09/2019 09:46

JERUSALEM, Sept 23 (Reuters) - Germany's Adler Real Estate
 ADLG.DE  has agreed to buy ADO Group  ADO.TA , a Tel
Aviv-listed shareholder in ADO Properties  ADJ.DE , for 708
million euros ($777 million), the companies said on Monday.
    Following the acquisition, Adler will hold a 33% stake in
ADO Properties, a 4.4 billion euro German-listed residential
real estate company focused on Berlin. ADO Group will be
delisted from the Tel Aviv Stock Exchange.
    The 708 million euro value represents an 83% premium on ADO
Group's closing share price on Sunday. Shares were up 60.5% in
Tel Aviv in late-morning trade.
    Adler said the deal will be funded by a combination of a
rights issue, fully guaranteed and backstopped by Adler anchor
shareholders, cash from disposals of non-yielding assets and
financial debt.
($1 = 0.9110 euros)

 (Reporting by Ari Rabinovitch; Editing by Tova  Cohen)
 ((ari.rabinovitch@thomsonreuters.com;  +972-2-632-2202; Reuters
Messaging: ari.rabinovitch@thomsonreuters.com@reuters.net))