KARDAN N.V. Mr. Oren joined Kardan in February 2012 and began serving as the CEO in June 2012. As a result of the size of the Company's debt burden and decline, principally in its Eastern European real estate interests, he immediately faced the task of reducing the Company's debt while simultaneously overseeing improvement in the results of its underperforming subsidiaries.
Since Mr. Oren's appointment, Kardan reduced its debt to banks and its debenture holders by more than EUR 350 million and in May 2015 he reached an agreement with the Company's debenture holders effectively for a two year postponement of repayments of principals.
During Mr. Oren's tenure, a substantial improvement in the operating contributions from Kardan's continuing operations was also achieved.
As part of the debt servicing activities, a major effort was made to sell off assets in order for the Company to fulfil its cash needs. Under Mr. Oren's leadership, the Company has succeeded in selling a number of assets including the remainder of its investment in the real estate company GTC SA, listed in Poland, its 50% interest in the shopping centre in Chengdu, China, TBI Credit in Bulgaria and 75% of Kardan Water Infrastructure Group ('KWIG', a subsidiary of Tahal), owning wastewater treatment plants in China. The second phase, comprising the remaining 25%, of the sale of KWIG will be completed shortly. Moreover, the announcement that an agreement has been signed to sell TBIF, holding the Company's banking and retail lending activities, was issued yesterday morning.
Shouky Oren, CEO of Kardan N.V.: "After four fascinating years at Kardan, during which the Company has undergone a significant change, I have decided to embark on a new journey. During the years I served the Company, Kardan focused on debt reduction through the sale of some of its assets and the improvement of the financial results of the subsidiaries led by its highly competent managements. Notwithstanding the difficult market conditions, I am proud of our results. The Company has proved its ability to act in a transparent and credible manner and due to this fact a relationship of trust has been established with the Company's Debenture Holders which has enabled us to act in their interests and in those of our shareholders. I have had the privilege to work with a supportive and a professional Board of Directors and received the full backing of the controlling shareholders and this is the opportunity to thank them for the confidence and trust they have placed in me. I believe in the ability of the Company to fulfil its obligations to its stakeholders and to increase value for its shareholders and I will support Mr. Hasson to affect a smooth handover".
Peter Sheldon, Chairman of the Board of Kardan N.V. "My four years of working with Shouky Oren have been a real pleasure. Throughout this period, which has not been the easiest in Kardan's history, he has shown outstanding skill and diplomacy in meeting demanding objectives and has done so whilst maintaining the full support of his executives throughout the business. He
has led the Company through a period of substantial change and will be leaving it in a significantly better position than when he arrived. My Board colleagues and I will be extremely sorry to see him depart but understand his wish to move on to new challenges. We wish him well."
The Board of Kardan has decided to appoint Mr. Ariel Hasson, currently CEO of Kardan's Financial Services division, to replace Mr. Oren who will relinquish his duties on April 15, 2016. Mr. Hasson is expected to be nominated as an Executive Board Member at the Company's
Annual General Meeting in May 2016.
Ariel Hasson (43) has been managing Kardan Financial Services since 2010, a period during which he has managed to produce a significant turnaround that has brought the banking and retail lending activity from a loss situation to sustainable profitability.
Prior to joining Kardan, Mr. Hasson served as an Executive Vice President at Bank Hapoalim as Head of Emerging Markets Banking following a period at the Boston Consulting Group.
DISCLAIMER
This press release contains forward-looking statements and information, for example concerning the financial condition, results of operations, businesses and potential exposure to market risks of Kardan N.V. and its group companies (jointly "Kardan Group"). All statements other than statements of historical fact are, or may be deemed to be, forward-looking statements (including "forward looking statements" as defined in the Israeli Securities Law). Forward-looking statements are statements of future expectations that are based on management's current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in these statements. These forward-looking statements are identified by the use of terms and phrases such as ''anticipate'', ''believe'', ''could'', ''estimate'', ''expect'', ''intend'', ''may'', ''plan'', ''objectives'', ''outlook'',
''probably'', ''project'', ''will'', ''seek'', ''target'', ''risks'', ''goals'', ''should'' and similar terms and phrases. A variety of factors, many of which are beyond Kardan Group's control, affect our operations, performance, business strategy and results and could cause the actual results, performance or achievements of Kardan Group to be materially different from any future results, performance or achievements that may be expressed or implied by such forward-looking statements. For Kardan Group, particular uncertainties arise, amongst others but not limited to and not in any order of importance, (i) from dependence on external financing with the risk that insufficient access to capital threatens its capacity to grow, execute its business model, and generate future financial returns (ii) from concentration of its business in Central Eastern Europe and China as a result of which Kardan Group is strongly exposed to these particular markets (iii) from risks related to the financial markets as a result of Kardan N.V.'s listings on Euronext Amsterdam and the Tel Aviv Stock Exchange and (iv) from it being a decentralized organization with a large number of separate entities spread over different geographic areas in emerging markets, so that Kardan Group is exposed to the risk of fraudulent activities or illegal acts perpetrated by managers, employees, customers, suppliers or third parties which expose the organization to fines, sanctions and loss of customers, profits and reputation etc. and may adversely impact Kardan Group's ability to achieve its objectives and (v) from any of the risk factors specified in Kardan N.V.'s Annual Report and in the related "Periodic Report" (published by Kardan N.V. in Israel) published in April, and which is also available at the Kardan website. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those described in the relevant forward-looking statement as expected, anticipated, intended, planned, believed, sought, estimated or projected. Kardan N.V. does not intend or assume any obligation to update or revise these forward-looking statements in light of developments which differ from those anticipated.
Kardan identifies and develops assets in promising emerging markets, mainly in Asia (predominantly China), Africa and selected CEE and CIS countries. Its activities are mainly focused on three sectors that benefit from the rising middle class: Real Estate, Water Infrastructure and Banking & Retail Lending. Company headquarters are in the Netherlands. Kardan aims at holding controlling interests in its investments and is actively involved in the definition and implementation of their strategy through its local business platforms. Total assets as of September 30, 2015 amounted to EUR 1 billion; revenues totalled EUR 164 mn in the first nine months of 2015. Kardan is listed on Euronext Amsterdam and the Tel Aviv Stock Exchange.
Caroline Vogelzang Director Investor Relations Vogelzang@kardan.nl
+31 (0)20 305 0010
"This press release contains regulated information (gereglementeerde informatie) as defined in
the D utc h Ac t on F ina nc ia l Sup erv is ion ( W et op het fi n anc ie el t oe zic ht) "
Kardan NV issued this content on 16 March 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 16 March 2016 07:31:07 UTC
