Delek Group Ltd. (TASE: DLEKG) is setting out to raise NIS 37 million through a public offering of shares, in order to meet its commitment to its bondholders to raise a total of NIS 450 million through offerings in May, August and December this year.
Up until yesterday, Delek Group had raised NIS 313 million in May and August, and a further NIS 100 million in the past few days through the exercise of warrants issued in the previous offerings.
Figures published by Delek Group show that its controlling shareholder, Yitzhak Tshuva, has injected NIS 15.3 million into the company in the past few days through the exercise of some of eh warrants that he held. Tshuva therefore currently holds 52.4% of the company.
Under the plan agreed last May between Delek Group and its bondholders, the company is required to raise NIS 50 million more capital in April 2021. The company has two series of warrants (10 and 12) issued for this purpose, which a currently deeply in the money, such that the full exercise of them will render a further public offering unnecessary.
Delek Group's share price has shot up 57% in the past month to NIS 105.7, after the company published good financial results for the third quarter of 2020. The company believes that it will have no difficulty in raising the amount it currently needs to raise, thanks to its good third quarter results, the rise in its share price, and a substantial fall in the yields on its bonds. At the height of the uncertainty surrounding the company, in August this year, there was demand amounting to over NIS 300 million for an offering in which it sought to raise just NIS 167 million.
Delek Group closed at a market cap yesterday of NIS 1.78 billion, after an 80% decline for the year to date. The company has debt (at par value) of NIS 5.55 billion owing to the holders of its seven series of bonds.
Most of the debt, NIS 3.16 billion, is owed to the series 31 bondholders. These bonds are currently traded at an annual yield to maturity of 29%, after a 134% rise in their price since the end of June. The duration of this series of bonds is 2.1 years.
Published by Globes, Israel business news - en.globes.co.il - on December 16, 2020
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