Delek Group board decides to raise NIS 300m

Yithak Tshuva / Photo: Yossi Cohen

Delek Group's management will put together a plan for raising the cash within the next few days.

The board of directors of Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has decided to adopt the plan for raising cash and strengthening collateral proposed to it by consultancy Giza Singer Even (GSE), run by Yariv Philosoph. The board decided to raise NIS 300 million.

The details were revealed by Delek Group executive vice president and chief legal counsel Adv. Liora Pratt Levin, who is company secretary, at a meeting of Delek Group's bondholders held via Zoom yesterday. Adv. Pratt Levin informed the bondholders that the board had instructed the management to take steps to raise the funds, and that within the next few days the management would determine how this should be carried out and present its plan to the board.

In its proposal submitted last week, GSE recommended raising a smaller amount, NIS 260 million, of which NIS 130 million would be raised in 2020 and NIS 130 million in 2021. The amount decided on by the Delek Group is still lower than the NIS 400 million that the company's bondholders demanded that the company should raise immediately.

Delek Group owes its bondholders NIS 6 billion, of which NIS 5.88 billion is principal, and over NIS 2 billion to its financing banks. Under GSE's proposal, Delek Group will realize its holding in fuels company Delek Israel, with the consideration to be used to repay its bank debt.

Delek Group's main assets are 55.14% of the Delek Drilling partnership, full ownership of Ithaca Energy, which produces oil in the North Sea, and full ownership of Delek Israel, which operates fuel stations and convenience stores.

Published by Globes, Israel business news - en.globes.co.il - on April 27, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

Yithak Tshuva / Photo: Yossi Cohen
Yithak Tshuva / Photo: Yossi Cohen
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