Itzhak Swary's Allied Holdings enters bidding for Delek Israel

Itzhak Swary

Allied has joined forces with Elco Holdings, with a view to splitting Delek Israel's assets if their bid succeeds.

Allied Holdings, headed by Itzhak Swary, has joined Elco Holdings Ltd. (TASE: ELCO) in talks to buy Delek Israel from Yitzhak Tshuva's Delek Group Ltd. (TASE: DLEKG). Sources inform "Globes" that the two investment companies intend to buy Delek Israel jointly, for NIS 1.2 billion. The plan is that that after the acquisition, if it goes ahead, they will separate forces: the fuels business, valued at NIS 700 million, will be held by Elco and Bank Leumi (TASE: LUMI) investment arm Leumi Partners, while Allied will take over the two power plants owned by Delek Israel, valued at NIS 500 million.

The power plants, at Ashkelon and Soreq, are close by desalinations plants,, and provide them with power. Delek Group recently held talks with investment fund Keystone on a sale of the power plants for more than NIS 500 million. After a few days of due diligence checks Keystone made a much lower counter offer.

Allied is a holding company that has been active for many years in real estate, electronics, infrastructure, and the automotive industry. Its assets are estimated at some NIS 1 billion.

Allied recently entered the field of infrastructures, taking part in light rail tenders, and buying a desalination plant in Ashdod, among other investments. It has also become a party at interest in credit card company Max, with a 5% stake.

Yesterday, "Globes" revealed that Elco Holdings, controlled by brothers Daniel and Michael (Mikey) Salkind, together with Leumi Partners, were in talks on the purchase of Delek Israel from Delek Group. There are believed to be additional parties interested in buying Delek Israel and its power plants.

Published by Globes, Israel business news - en.globes.co.il - on April 13, 2020

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

Itzhak Swary
Itzhak Swary
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