Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, plans to float Delek Logistics Partners LP, a wholly-owned subsidiary of Delek US Holdings Inc. (NYSE:DK), on the New York Stock Exchange. The company will be listed under the ticker DKL. The company filed a prospectus with the US Securities and Exchange Commission (SEC) in which it said it plans to raise up to $135 million at a company valuation yet to be determined.
Delek US set up Delek Logistics to own, operate, acquire, and construct crude oil and refined products logistics and marketing assets. The company's initial assets will include 200 miles of transportation pipelines and a 600 mile crude oil gathering system with associated storage facilities with 1.4 million barrels of active shell capacity supporting Delek US’ El Dorado and Tyler refineries; the 185-mile Paline crude oil pipeline from Longview to Nederland in Texas; Delek US’ wholesale marketing business in Texas; and five light product terminals - the Abilene, Big Sandy and San Angelo terminals in Texas and the Nashville and Memphis terminals in Tennessee.
Barclays Bank and Bank of America Merryll Lynch will serve as underwriters.
Delek US's share price opened at $19.13 in New York today, giving a market cap of $1.1 billion. Delek Group's share price fell 1.8% by late afternoon on the TASE to NIS 563.90, giving a market cap of NIS 6.5 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on July 12, 2012
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