Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, is struggling to sell its US insurance company, Republic Companies Group Inc. Delek today announced changes in the terms of the deal signed in April for the sale of the controlling interest in Republic to a US consortium: Delek will sell just 55% of Republic instead of 100% (including the option). The proceeds of the sale will fall accordingly, and Delek's seller's loan to the buyer has been cancelled. RELATED ARTICLES Tshuva sells European gas stations for €355m Delek sells control of US insurer for $121m Under the revised deal, Delek will initially sell 36% of Republic, not 55%, and the three-year option for additional shares has been reduced to 19% from 45%. Republic's company value for the deal is unchanged at $220 million, and Delek will make $80 million on the sale of the initial stake. Originally, it was due to receive $121 million on the sale of 55% of Republic. There is no assurance that the deal will be closed. Published by Globes [online], Israel business news - www.globes-online.com - on June 19, 2014 © Copyright of Globes Publisher Itonut (1983) Ltd. 2014
