Migdal refuses to fund Tshuva's power stations

The deal was for conditional leverage of $120 million (NIS 400 million) in the first stage, and $200 million in the second stage.

Yitzhak Tshuva has suffered a heavy blow: after a year of due diligence, Migdal Insurance and Financial Holdings Ltd. (TASE: MGDL) has announced that it will not fund the construction of Delek Group Ltd.'s (TASE: DLEKG) two power stations.

The deal was for conditional leverage of $120 million (NIS 400 million) in the first stage, which was expected to grow to $200 million in the second stage.

Migdal responded, saying, "Migdal has indeed informed the Delek Group that due to market conditions, it has decided at this stage to suspend the continuation of the examination process that it has been conducting with respect to the financing transaction for the construction of the power station.

"As is well-known, every deal that is brought before Migdal is properly, thoroughly and responsibly examined due to the fact that pension savings funds are at stake. As a result, only a portion of the opportunities offered the company come to fruition following the in-depth and orderly examination of each deal."

Published by Globes [online], Israel business news - www.globes-online.com - on February 15, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

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