Shikun & Binui Publishes Tender Offer to Acquire Controlling Stake in ADO (ADO TA); Upon Completion, Company Expects to Record NIS300m-380m in Net Profit

AIRPORT CITY, Israel, Aug. 20, 2017 /PRNewswire/ -- Shikun & Binui Ltd. (TASE: SKBN.TA),a global construction, infrastructure and real estate company, has published a tender for the purchase of an additional 10% of the shares of ADO, a company in which it currently holds a 40.15% share. If the tender is completed, the Company will have obtained a controlling share of ADO and will begin consolidating its financial results.

If the tender offer is completed in full, Shikun & Binui estimates that it will record net profit of approximately NIS 300 million to NIS 380 million at this stage. In addition, after consolidating ADO within its financial results, the Company expects that its total balance sheet assets will increase by approximately NIS 11 billion.

Commenting on the transaction, Mr. Moshe Lahmani, Chairman of Shikun & Binui, said, "ADO has been building its activities in Berlin for more than a decade, a period during which the city grew to become a thriving and fast-growing city, and demand for rental apartments has been growing right along with it. In our opinion, the city's strong macro indicators support further growth in our business, as proven most recently by ADO's successful bond offering in Germany, which demonstrated the confidence of the local market in ADO's prospects, and in the rise in market value that ADO has seen for its properties during the first half of 2017. We view ADO as a strategic asset, and see this acquisition as the embodiment of the strategic decision we have taken to expand our portfolio of income generating assets."

Mr. Yaron Karisi, Shikun & Binui's CEO, added, "During the past several years, ADO has built a unique, stable, high-quality operating platform with an ability to support an additional scale-up of its activities in Berlin. The successful ?400 million bond offering that ADO completed recently will enable it to acquire additional assets in line with its strategic goals, and we believe that ADO is poised to remain a major player in its market for years to come."

ADO, whose shares are traded on the Tel Aviv Stock Exchange under the symbol ADO TA, is the controlling shareholder of ADO Properties, a Berlin-based company that holds over 20,000 rental apartments and other properties in the city.

About the Shikun & Binui Group

The Shikun & Binui Group is a global construction and infrastructure company that operates in Israel and internationally in seven segments: 1) infrastructure and construction contracting outside of Israel; 2) infrastructure and construction contracting within Israel; 3) real estate development within Israel; 4) real estate development outside of Israel; 5) renewable energy; and 6) concessions. The Group's activities focus on large, highly complex projects carried out for entities in private and public sectors with a focus on sustainability.

This summary announcement was prepared solely for the convenience of the reader and does not replace Shikun & Binui Ltd.'s (hereafter ? "the Company") full report.  The information contained in this announcement is, by its nature, incomplete. All of its contents are provided as a supplement to the Company's report, and are subject to the declarations therein stated.  This announcement includes forecasts, assessments, estimates and other information relating to the Company or its subsidiaries, or to other parties or to future events and matters, the extent of whose realization is not certain and is not under the sole control of the Company (forward-looking information, as defined in the Securities Law-1968).  The key facts and data serving as the basis for this information are facts and data, among others, related to the current status of the Company and its businesses, facts and data relating to the current status of the operating segments in which the Company engages in its areas of operation, and other macroeconomic facts and data known to the Company on the preparation date of this presentation.

It is understood that forward-looking information does not constitute a fact and is based solely on subjective assessments.  Forward-looking information is uncertain and for the most part, is not under the Company's control.  The realization or non-realization of the forward-looking information will be influenced, among others, by the risk factors that characterize the Company's operations, as well as developments in the general environment and external factors that impact the Company's operations.  The Company's future results and achievements could differ significantly from those presented in this presentation.  The Company is not obligated to update or modify the said forecast or assessment, and is not obligated to update this announcement.  This announcement does not constitute an offer to purchase the Company's securities or an invitation to receive such offers.  An investment in securities in general, and in the Company in particular, carries risk.  One must take into account that past data do not necessarily indicate future performance.

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