Delek Group sells Cohen Development stake

Yitzhak Tshuva

Yitzhak Tshuva's Delek Group is selling its 51.8% stake in Cohen Development Oil & Gas for NIS 207 million, representing an 8.5% discount on the market price.

Delek Group Ltd. (TASE: DLEKG) controlling shareholder Yitzhak Tshuva continues to realize assets. Delek Group announced yesterday evening that it had signed an agreement for the sale of its holdings (51.8%) in Cohen Development Gas and Oil Ltd. for NIS 207 million. The deal is at a discount of 8.5% on the market value of Delek Group's holding in Cohen Development yesterday.

The shares were sold to Gideon Tadmor (who served in senior management positions in Delek Group for many years and who currently controls the Navitas Petroleum partnership), George Horesh's Union Group (Israeli importer of Toyota vehicles), and Itzhak Swary's Yongil Ltd.

In addition to the consideration for the shares sold, Delek Group will be entitled to receive its $2.6 million share of the $5 million dividend declared by Cohen Development, payable tomorrow.

Delek Group's share price has dropped by about 8% on the Tel Aviv Stock Exchange this morning.

Delek Group says that since it has received a credit line from one of Israel's major banks against its shares in Cohen Development and participation units in Delek Drilling, it has reached an understanding with the bank that half the consideration in the current deal (some NIS 103 million) will be released to the group for various uses, and that the remainder of the money will continued to be subject to a lien to secure the line of credit.

The current deal follows the agreement signed by Delek Group a few weeks ago for the sale of its holdings in desalination company IDE for NIS 164 million.

Tshuva is also promoting further deals for the sale of assets in order to boost Delek Group's liquidity. Earlier this month, he signed a memorandum of understanding for the sale of two plots (3 and 4) amounting to 14.5 dunams (3.6 acres) in the Bavli Park residential real estate project in north Tel Aviv for NIS 400 million to Hagag Group, and Delek Group is also in the midst of negotiations on the sale of fuel company Delek Israel for around NIS 1.2 billion.

Published by Globes, Israel business news - - on April 20, 2020

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

Yitzhak Tshuva
Yitzhak Tshuva
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