Tshuva to delist Delek Energy at 30% premium

Delek Group will offer participating units in Avner and Delek Drilling instead of cash for the Delek Energy shares.

Yitzhak Tshuva intends to delist Delek Energy Systems Ltd. (TASE: DLEN), through which Delek Group Ltd. (TASE: DLEKG) controls Yam Tethys, Tamar, and Leviathan partners Avner Oil and Gas LP (TASE: AVNR.L) and Delek Drilling LP (TASE: DEDR.L). Sources believe that Delek Group will offer NIS 1,500 per share for the public's 18.55% holding in Delek Energy, a 30% premium on yesterday's closing price of NIS 1,152.

Tshuva reportedly will not pay cash for the Delek Energy shares, but offer participating units in Avner and Delek Drilling owned by Delek Group. Delek Group directly owns 14.44% of Avner and 9.02% of Delek Drilling.

Last week, Delek Energy was relegated from the Tel Aviv 100 Index in the biannual index update, because the public's stake was below the threshold criteria and because of the thin trading in the share. Delek Group could get Delek Energy back into the index by selling part of its holding in the subsidiary, but Tshuva has apparently decided otherwise.

Delek Group currently owns 79.87% of Delek Energy, which owns 46.58% of Avner and 50.21% of Delek Drilling.

Delek Group was unavailable for comment.

Delek Energy's share price rose 9.1% by mid-afternoon to NIS 1,257, giving a market cap of NIS 5.8 billion. Delek Group's share price rose 2.6% to NIS 744.60, giving a market cap of NIS 8.31 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on June 22, 2011

© Copyright of Globes Publisher Itonut (1983) Ltd. 2011

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