Published On: Thu, Nov 27th, 2014

Delek expects London IPO in mid-2015

Delek CEO: A London listing will help us become a leading international energy company.

Yitzhak Tshuva

 

In its third quarter financial report published today, Delek Group Ltd. (TASE: DLEKG) said it is “currently exploring the possibility and making preparations for registering the company’s shares for trading on the London Stock Exchange in mid-2015, in addition to its current listing in Israel.”

Delek CEO Asi Bartfeld said, “We continue to promote the listing of Delek Group shares for trading on the London Stock Exchange. We believe that as a leading Israeli company with strong results, high liquidity and strong balance sheets, the Group is positioned as an attractive investment for foreign investors. We believe that a UK listing will allow increased exposure to the Group’s energy activities to a large and diverse international investors’ base, and is a step in our long-term goal of becoming a leading international energy company.”

Revenue for the third quarter of 2014 was $1.48 billion down from $1.6 billion in the corresponding quarter of last year. However, despite the drop in revenue, net profit more than doubled to $42.8 million in the third quarter, from $21.1 million in the corresponding quarter of 2013. Delek will pay a dividend of $41.8 million for the third quarter of 2014.

Bartfeld said, “During the third quarter, as well as October, we made a series of successful exits. This is a solid representation of our ongoing achievements and success in executing on our strategic decision to focus on the upstream energy. In the coming quarters, we intend to continue our strategy of focusing the group on the exploration, development and production of natural gas and oil with an emphasis on promoting the development plans of Leviathan, as well as identifying new opportunities in these areas.”

Highlights during the third quarter included the sale of holdings in Roadchef, Delek Europe, Barak Capital and partially in Republic Insurance for total proceeds of $750 million. However, talks to sell its 47% controlling stake in the The Phoenix Holdings Ltd. (TASE: PHOE1;PHOE5) to the US Kushner family for about 447 million seem to have stalled.

 

Published by Globes [online], Israel business news – www.globes-online.com – on November 27, 2014

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