NOTICE REGARDING CONTROLLING SHAREHOLDER KARDAN
Amsterdam, January 3, 2019 - Kardan N.V. (‘Kardan’ or ‘the Company’), active in Real Estate
and Infrastructure in emerging markets hereby announces that the Israeli court has
approved the debt settlement of Mr. Grunfeld, one of the Company’s controlling
shareholders, with his creditors, following the request for bankruptcy filed against him in
Mr. Grunfeld holds (directly and indirectly, through a company controlled by him) 21,119,927 shares
of the Company, representing approximately 17.17% of the Company’s share capital and of its
voting rights. Mr. Grunfeld is also a Board member of Kardan. According to the information provided
to the Company, 11,591,189 shares are pledged to Bank Hapoalim Ltd. (‘Bank Hapoalim’) and
9,053,738 shares to Bank Leumi le-Israel BM (‘Leumi Bank’) to secure credit granted to Mr. Grunfeld
or anyone on his behalf by the said banks. The other Company’s shares held by Grunfeld are
pledged to secure Grunfeld's liabilities to three other entities.
In addition, the Company was informed as followed in relation to the Settlement:
? the pledges and proceedings relating to them will remain in force (where each of the said banks
will be entitled to realize the pledges registered in its favor and to sell the shares pledged in its
favor at its sole discretion).
? Mr. Grunfeld, or anyone acting on his behalf, undertook to purchase from the banks, at the
banks’ request, up to a total of 2,500,000 Company’s shares of the shares pledged to them, for
a total of NIS 8 million during a period specified in the Settlement.
? for the purpose of completing the Settlement, the parties to the controlling agreement in the
Company, Messrs. Avi Schnur, Eytan Rechter and Joseph Grunfeld and the companies under
their control, have signed or are expected to sign a mutual waiver of any mutual limitation
between the parties with respect to the sale of pledged shares (if any).
? the completion of the Settlement is expected on January 22, 2019.