Apollo Global Management, LLC (NYSE:APO) signed an agreement to acquire an additional 10% stake in A.D.O. Group Ltd. from Shikun & Binui Ltd. (TASE:SKBN) for approximately ILS 240 million on February 1, 2019. Under the terms of the agreement, Apollo will acquire 2.75 million shares in A.D.O. Group at ILS 88 per share. The acquisition agreement includes a number of related undertakings, including an undertaking by Shikun not to sell shares of ADO for 30 days from the signing date of the acquisition Agreement, and to grant first refusal rights in favor of buyer upon the sale of the shares of ADO for a further period of 90 days; furthermore, there is a unilateral commitment by the buyer to vote at the general meetings of ADO in favor of the appointment of one candidate to the Board of Directors of ADO, whose identity will be determined by Shikun, commencing from the closing date of the transaction and as long as it holds 7.5% or more of the shares of ADO. The signing of the agreement also constitutes fulfillment of the precondition for the entry into force of the option agreement.

The completion of the additional acquisition transaction is subject to a number of preconditions, including the receipt of the approval of the Antitrust Authority in Germany and completion of the sale of an additional 20% of the shares of ADO by Shikun & Binui within 120 days of the signing date of the agreement. Shikun & Binui may waive the fulfillment of the condition for the sale of an additional 20% of the shares of ADO, in whole or in part.