Tshuva to delist Gadot Biochemicals at 128% premium

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has made an offer to purchase for subsidiary Gadot Biochemical Industries Ltd. (TASE: GDBC) at NIS 4 per share, for a total of NIS 7.94 million of the public's 1.99 million shares in the company (a 10.76% stake).

Delek Group subsidiary Delek Investments and Assets Ltd. currently owns 12.17 million shares in Gadot Biochemcials - 65.74% of the company, and Israel Corporation (TASE: ILCO) subsidiary Oil Refineries Ltd. (TASE:ORL) owns 4.35 million shares, for a 23.5% stake. The offer to purchase reflects an 128% premium on today's price of NIS 1.757 per share, giving a market cap of NIS 32 million.

Delek Group is also offering to buy Gadot Biochemicals series 5 warrants that are traded on the TASE.

Gadot Biochemicals' share price has fallen 82% over the last 12 months and 93% over the last five years.

Published by Globes [online], Israel business news - www.globes-online.com - on August 30, 2011