Three days after announcing the sale of its stake in Barak Capital for over NIS 250 million, Delek Group Ltd. (TASE: DLEKG), controled by Yitzhak Tshuva, announced this morning that, at the weekend, it completed the sale of its holdings in Delek Europe BV to British private equity fund TDR Capital LLP for €355 million (NIS 1.7 billion). Delek Europe, managed by Boaz Chechik, runs fuel stations and convenience retail stores in Belgium, the Netherlands, Luxembourg, and France. It owns 1,215 fuel stations, 860 convenience stores, 403 car washes, 278 bakeries, 12 restaurants, and one hotel.
The total value of the sale, including Delek Europe's debt, is some NIS 3.3 billion. It is part of Delek Group's strategy of focusing on its gas and oil exploration business.
The terms of the deal are a €90 million payment due within the next few days, and €90 million plus 5% interest a year later. Delek is providing a seller's loan for the balance of €175 million, which will be repaid after five years, plus 5% annual interest. Delek will have a lien on Delek Europe shares as collateral for the loan.
Delek Group CEO Asaf Bartfeld said, "This is an excellent deal for the group, one that will bring an immediate free cash flow of hundreds of millions of shekels. The cash that will be received will contribute to strengthening the group's liquidity and financial flexibility."
Published by Globes [online], Israel business news - www.globes-online.com - on June 29, 2014
© Copyright of Globes Publisher Itonut (1983) Ltd. 2013