Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, is bring forward the sale of one of its assets in order to enhance its flexibility at a time of the market crisis and the plummeting prices of its securities. It was reported today that Delek Group would sell its 20% holding in IDE Technologies for NIS 170 million. The price is 20% lower than the $60 million (NIS 220 million) that Delek Group estimated that it would receive by selling its IDE stake in 2021.
The buyer is Alfa Water Partners, headed by IDE chairman Avshalom Felber and Amit Lang. Alfa Water acquired 30% of IDE from Delek Group last year, after acquiring 50% of IDE's shares from Israel Chemicals in 2017.
In the projected cash flow published by Delek Group last week, it was reported that the sale holding was planned for late 2021 (nearly two years from now) for NIS 207 million ($60 million at an exchange rate of NIS 3.45/$). The crisis in the markets has since caused a rise in the shekel-dollar exchange rate. Discounting the future amount to the present yields a similar price to what Delek Group is now receiving.
IDE designs and constructs desalination facilities all over the world. IDE was previously owned in equal shares by Israel Chemicals and Delek Group, until being sold to a group of investors formed by Felber and Lang. Delek Group said that its current action was another example of its financial flexibility and a part of a range of actions it was taking, and at its disposal, in furtherance of its strategy.
Published by Globes, Israel business news - en.globes.co.il - on March 15, 2020
© Copyright of Globes Publisher Itonut (1983) Ltd. 2020