Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, today confirmed yesterday's report in "Globes" that it is considering delisting subsidiary Delek Energy Systems Ltd. (TASE: DLEN) from the TASE, by offering the public participating units in Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L) directly held by Delek Group. Sources said that Delek Group would make the offer at a 30% premium on Tuesday night's closing price.
In a notice to the TASE, Delek Group said, "Following media reports about plans for an offer to buy all the shares in Delek Energy Systems in exchange for participating units in Avner Oil Exploration and Delek Drilling, the company hereby announces that it is considering this option, as well as others, but the terms of an offer have not yet been determined. Moreover, the issue has not yet been discussed by the board of directors."
Delek Energy incorporates Delek Group's oil and gas exploration operations, including through Avner and Delek Drilling, which are partners in Yam Tethys, Tamar, Leviathan, and other licenses.
Following the reports, Deutsche Bank reiterated its "Buy" recommendation for Delek Group with a target price of NIS 1,080, a 43% premium on yesterday's closing price. It said that the delisting of Delek Energy would simplify Delek Group's holding structure, and believe that investors will welcome the measure.
Delek Group's share price rose 9.6% in early trading to NIS 828, giving a market cap of NIS 8.6 billion, and Delek Energy's share price was unchanged at NIS 1,260, giving a market cap of NIS 6.32 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 23, 2011
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