Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has taken another step towards selling its stake in the Tamar natural gas reservoir. The group has reported that it has completed a deal with the teachers advanced training funds and the high school teachers, seminary teachers, and supervisors advanced training funds to sell its direct rights to the super-royalties of Delek Drilling (22%) and Tamar Petroleum (9.25%) in the Tamar and Dalit gas fields.
The price in the agreement was set at $52.5 million, minus proceeds received by Delek Group in super-royalties during the period from the date of eligibility for royalties (April 2019) until completion of the deal. Delek Group's cash proceeds in the deal are therefore $46.2 million.
As of the end of 2017, the super-royalties to which Delek Group was entitled from the Tamar reservoir were 1.5% of the revenue from the reservoir. The proportion jumped to 6.5% at the beginning of 2018, after the investment in the reservoir was made back.
In June 2018, Delek Group completed the sale of the super-royalties of Delek Energy, its subsidiary, to a special purpose vehicle, Delek Royalties, which was founded and raised money through a share offering and a bond issue. Delek Royalties raised NIS 530 million, including NIS 404 million in bonds and the rest in shares. Demand was fairly low, leaving Delek Group with a 40% direct holding in Delek Royalties' shares.
The share price of Delek Royalties has dropped 20% since trading in the share on the Tel Aviv Stock Exchange began.
Published by Globes, Israel business news - en.globes.co.il - on December 29, 2019
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