Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, sold three million shares of Delek US Holdings Inc. (NYSE:DK), 5.05% of the company, for $76.5 million (NIS 306 million). Delek Group expects to report a capital gain of NIS 153 million on the sale in its financial report for the third quarter.
Last month, Delek Group sold 5% of Delek US for NIS 285 million and a capital gain of NIS 134 million. Altogether it has sold NIS 600 million worth of Delek US shares, for a capital gain of NIS 300 million. The sales are a demonstration of strength by Tshuva, given that Delek Group's cash reserves total NIS 1.5 billion.
Both transactions were off-floor sales to Barclays Bank plc (LSE: BARC), which sold them to its customers. Yesterday's sale was made at $25.30 per share, 7.6% less than Delek US's closing price the day before.
Delek Group president and CEO Asaf Bartfeld said, "We're a holding company, and we sell in times of rising prices and high values, just as last year we sold shares in Noble Energy Inc. (NYSE: NBL) and Delek Automotive Systems Ltd. (TASE: DLEA) at NIS 50 per share." (Delek Auto's current share price is NIS 22).
Delek US's share closed at $25.90 yesterday, up 140% since the beginning of the year. After the sale, Delek Group owns 56.82% of Delek US, which means that Delek Group still has future potential profits from the company. The latest sell-offs will create value for Delek Group, allowing it to continue distributing dividends. Tshuva needs money to repay bank debts and to implement the debt settlement for Delek Real Estate Ltd. (TASE: DLKR).
Delek Group has distributed NIS 200 million in dividends so far this year, after distributing NIS 505 million in 2011 and NIS 960 million in 2010. Tshuva owns 64.5% of the company.
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2012
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