Published On: Sun, Aug 18th, 2013

Delek to post NIS 500 million ($142 million) gain on Delek US


Delek Group sold 1.5 million Delek US shares for $42 million in an off-floor transaction.

DELEK US

/By Adi Ben-Israel /

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has sold shares in Delek US Holdings Inc. (NYSE:DK) for $42 million to a foreign financial institution.
“The deal is part of Delek Group’s strategy to focus on gas and energy in Israel, ” said Delek Group CEO Asi Bartfeld.

Delek Group sold the shares in an off-floor transaction after Wall Street closed on Thursday. Delek US’s share price fell 6.4% on Friday to $26.76, giving a market cap of $1.58 billion. Delek Group sold 1.5 million Delek US shares, 2.5% of the company, at $27.78 per share.

“The company has completed its accounting review, which included discussions with the staff of the Israel Securities Authority, as a result of which, as of the second quarter of 2013, the company will no longer consolidate Delek US in its financial statements, ” stated Delek Group in a notice to the TASE. “The company will report in its financial statements for the second quarter of 2013, which will be published toward the end of the month, a currently estimated post-tax gain of NIS 450-500 million on the sale of its holding and the revaluation of the balance of its investment in Delek US.”

The share price of Delek US has fallen 36% since mid-March, after rising hundreds of percent in the preceding three years. In the past few years, the company benefited from widening refining margins, but the margin has narrowed lately, hurting the company’s results.
Published by www.globes-online.com 

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