Delek Group Ltd. (TASE: DLEKG) has sold a 15.5% stake in Delek US Holdings Inc. (NYSE:DK) for NIS 954 million ($276 million). The sale of 9.2 million shares took place on the secondary market. As part of the offer to purchase the sale price was set at $30 per share a 3.7% premium on the share's Wall Street closing price.
Delek Group, controlled by Yitzhak Tshuva, is currently examining the accounting consequences, and it is not clear whether the company will record a capital gain from the sale.
The stock distributors have an option to buy an additional 1,380,000 Delek US shares in the next 30 days. After exercising the option, Delek group will own 9.8% of Delek US’s equity. The stock distributors are Wells Fargo, Barclays, Bank of America Merrill Lynch, Goldman Sachs, and RBC.
Two months ago, in an off-market transaction, Delek Group sold shares totaling $ 91 million (315 million) to a financial institution. Delek Group has sold a total of $ 4 billion in Delek US since 2012.
This deal is directly in line with Delek Group’s strategy of focusing on its core businesses, with energy and gas, and exercising these options will increase value for Delek Group.
Delek Group CEO Asaf Bartfeld said that they see great potential in energy and gas for Delek Group, and the proceeds from the sale of the Delek US shares are intended to continue to increase the group’s liquidity, and to reduce financial leverage.
Published by Globes [online], Israel business news - www.globes-online.com - on May 15, 2014
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