Delek Group mulls delisting Delek Drilling

Yitzhak Tshuva  picture: Bloomberg
Yitzhak Tshuva picture: Bloomberg

Delek Group is considering an exchange offer to purchase by Delek Energy for Delek Drilling's participation units.

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva and managed by CEO Asi Bartfeld, is considering flattening the ownership pyramid of its energy companies. The company yesterday announced that it was exploring, with no certainty at this stage, delisting Delek Drilling Limited Partnership's (TASE: DEDR.L) participation units, which were created through a merger of the participation units of fellow subsidiary/partnership Avner Oil and Gas LP (TASE: AVNR.L). The idea is to delist Delek Drilling through an exchange offer to purchase by Delek Energy Systems, Delek Drilling's parent company, or through some other merger.

From Delek Group's standpoint, this measure, if carried out, will streamline the group, because every level of the pyramid creates a discount for the energy group.

Delek Group has been changing its structure in recent years in a number of ways, including selling activity, royalties, and companies, among other things as part of structural change and a focus on energy, following the government's natural gas plan.

Published by Globes [online], Israel Business News - www.globes-online.com - on October 24, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

Yitzhak Tshuva  picture: Bloomberg
Yitzhak Tshuva picture: Bloomberg
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