Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has announced that it is examining a restructuring of its business, whereby the group's energy and energy exploration activities will be concentrated in a new company to be listed on a foreign stock exchange, probably London, and/or on the Tel Aviv Stock Exchange.
Current Delek Group shareholders will receive shares in the new company, in proportion to their holdings in the group. The change is expected to occur in the course of 2014.
Delek Group explains that the move is intended to generate greater value for the company and its shareholders, since the restructuring will enable a larger and more varied group of investors to invest directly in its energy activity and to benefit from its potential in this field.
In the long term, the move is expected to reduce the inherent discount that exists in holding companies between the value of the core assets and their market capitalization.
Under the restructuring plan, the group will transfer to the new company its holdings in Delek Energy, Delek Drilling, Avner Oil and Gas, Cohen Development, Navitas Petroleum (a new company set up together with Gideon Tadmor), and also its rights to energy royalties.
Delek Group will continue to hold Phoenix Holdings, IDE, Delek Europe, Delek Israel, Delek Automotive, and all the remaining group companies.
Group CEO Asaf Bartfeld said, "We are happy to announce this important move on the eve of 2014. This is an important day for the company and for the Israeli energy industry. The planned restructuring will enable a larger and more varied community of investors to be exposed to the group's activity in gas and oil exploration and to benefit from the great potential that this activity holds."
Delek Group's share price is up 2.5% following the announcement.
Published by Globes [online], Israel business news - www.globes-online.com - on December 31, 2013
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