Delek Group Ltd. (TASE:DLEKG) has acquired the 44.5% stake in Mehadrin Ltd. (TASE:MEDN) of Discount Investment Corporation Ltd. (TASE:DISI). Delek Group has returned to a holding in fruit and vegetable grower and exporter Mehadrin, three years after being forced to sell its stake due to its severe liquidity crisis during the Covid pandemic.
Delek, which is paying NIS 168.44 per share, a 33% premium on yesterday's closing price, will become the controlling shareholder in Mehadrin. Delek, controlled by Yitzhak Tshuva and managed by CEO Idan Wallace, sees Mehadrin as an attractive asset not only because of its agricultural activities but also because of its extensive land holdings, which include 11,000 dunams (2,750 acres) around Israel and an additional 196 dunams (49 acres) privately owned. Mehadrin also has a range of logistics assets including cooling plants, packing houses and logistics centers in Israel and abroad.
Wallace said, "We see Mehadrin as a company with significant enhancement potential due to the enormous scale of fields and land reserves in its possession, which are owned and under long-term lease agreements and located in areas of demand in the State of Israel."
He added, "The deal has been completed under optimal conditions for the Delek Group based on its available sources, without taking on debt or increasing leverage, and in fact allows the group to take advantage of the business opportunity."
Published by Globes, Israel business news - en.globes.co.il - on July 17, 2023.
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