Ado Properties (ADO GY) is a Frankfurt listed German PRS company, which was 38% owned by the Israel listed ADO Group.
Over a period of months at the early into 2019, Ado Group had gone through a change of ownership, with Shikun&Binui (construction and infrastructure company) selling in tranches its controlling stake to the Dayan family and Apollo Global Management. As a result of this change in ownership, several changes to the Board of Directors of Ado Properties took place, which resulted in 5 members out of 8 being proposed and appointed by Dayan/Apollo and only 2 independents remaining, alongside the CEO. Most shareholders objected to the perceived lack of independence of the Board, but there was limited engagement from either the management or, particularly, the Board to alleviate investors’ concerns; in spite of objections, the proposed appointments have ultimately been voted in.
We divested our entire holding, and have subsequently witnessed the entire management team of Ado Properties being replaced in the summer of 2019, and a 30% decline in the stock share price performance from March to June of 2019 (albeit, admittedly, significantly impacted also by the introduction of a rental-freeze law in Berlin).