Delek Petroleum Ltd., a subsidiary of Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has sold its 39% stake in Amisragas (American Israeli Gas Corporation Ltd.) for $67.5 million to its partners, the Paradis family. The sale was made at a company value of $173 million for Amisragas, Israel’s second largest gas distribution company.
Delek Group expects to report a pretax capital gain of NIS 125-135 million on the sale.
In August, sources informed ''Globes'' that relations between Amisragas’s shareholders Delek Israel Fuel Corporation Ltd. (TASE: DLKIS), and the Paradis family of the US, which owns the other 61%, - had deteriorated, and that the parties wanted to dismantle their partnership. Delek offered to sell its stake to the Paradis family for $72 million, giving a company value of $185 million for Amisragas. Amisragas was given 60 days to exercise its first refusal rights.
The dispute arose because Amisragas refused to provide its financial reports to Delek Group, the minority shareholder, for the purpose of the IPO of Delek Israel. Delek Israel therefore transferred the stake to its parent company Delek Petroleum for $72 million. Amisragas objected to this transaction, so Delek Petroleum approached the Paradis family to buy it out.
Delek Petroleum ended up selling the stake at price 6.3% lower than it paid Delek Israel.
Published by Globes [online], Israel business news - www.globes.co.il - on September 23, 2007
© Copyright of Globes Publisher Itonut (1983) Ltd. 2007