Tahal sale flounders as Kardan creditors close in
Published January 11th, 2018
The embattled owner of Israeli water engineer Tahal is facing an uncertain future after the lead candidate to buy the engineering company dropped out of the sale process shortly before a crucial debt repayment deadline.
Kardan NV had confirmed earlier this week that it was in “advanced negotiations” with private equity house Fortissimo Fund over a sale of Tahal that was expected to raise in the region of $120-130 million. Fortissimo had emerged as the leading candidate after talks between Kardan and Chinese investors failed to reach a conclusion.
However, as the GWI newsletter went to press, Fortissimo confirmed that it was cancelling the planned deal, even though Kardan’s board of directors was reported to have approved the sale this morning. No reason was given for the eleventh-hour change in tack.
Kardan is under pressure to sell Tahal before the end of January in order to meet pressing debt concerns.