Controlling shareholder Yitzhak Tshuva seeks a two-month delay in Delek Group Ltd.'s (TASE: DLEKG) capital raising program, with sales of real estate businesses that he holds privately not yet completed. Delek Group wrote to the trustees of its bonds yesterday asking to defer the date of its second offering from the end of July to the end of September.
The trustees will meet to consider the request in the next few days, after which the holders of each of Delek Group's seven series of bonds will vote whether to accept it.
Under the agreements signed between Delek Group and its bondholders, the company was due to raise NIS 300 million by the end of July 2020. At the end of May, it raised NIS 137 million, so that it needs to raise a further NIS 163 million.
In the first offering, Tshuva injected NIS 37 million into Delek Group, and his holding was diluted to 60.3%. The offering was held at a price of NIS 100 per share, but since then the share price has continued to decline, and now stands at NIS 71.5.
This price gives Delek Group a market cap of NIS 955 million, so that if it raises NIS 163 million now without Tshuva's participation, his holding will be further diluted and quite considerably. In the past few months, Tshuva has signed deals for the sale of part of his private real estate activity in Israel in order to raise cash, but these deals have not yet been completed.
Published by Globes, Israel business news - en.globes.co.il - on July 15, 2020
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