Delek Group Ltd. (TASE: DLEKG) last night signed an agreement to sell its 46% stake in Barak Capital to its controlling shareholder and CEO Eyal Bakshi. The value of the deal is NIS 237 million.
Barak Capital is an investment group with activities including financial derivatives trading (nostro activities), and underwriting.
In 2007, Delek Group, controlled by Yitzhak Tshuva, invested NIS 24 million in Barak Capital. Thus Delek has made nearly 900% profit in seven years.
Under the terms of the deal, Delek will receive two cash payments totaling NIS 100 million - NIS 40 million when the deal is completed and NIS 60 million within 45 days of the contract being signed plus interest.
Baskshi will also receive a NIS 137 million loan over three years with variable interest of 7%. Barak Capital's shares will serve as collateral against the loan.
Barak Capital's net profit in 2013 was NIS 92 million, up 15% from 2012.
Delek CEO Asi Bartfeld said, "This is another successful realization for the Group alongside a range of successful agreements that we have signed in recent months as part of the Group's strategy to focus on the energy sector. The cash flow from this deal will continue to strengthen the Group's sound financial base."
Published by Globes [online], Israel business news - www.globes-online.com - on June 24, 2014
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