Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, will sell up to 12% of Delek US Holdings Inc. (NYSE:DK) for some $250 million as part of a secondary offering on Wall Street. An official announcement is due by tonight. Barclays Capital and Credit Suisse will lead the secondary offering.
Delek US's share price has risen 184% in the past year and 230% in the past two years. The refining operations of Delek US, Tshuva's American energy arm, posted strong profits in the first quarters of 2012, enabling Delek Group to sell shares in the company beginning in the summer of last year.
Delek Group has sold 10% of Delek US in three transactions for NIS 825 million, at an average price of $25 per share. Delek Group still owns 53% of the company.
Earlier this month, Delek US, run by president and CEO Uzi Yamin, published its financial report for the fourth quarter and full year of 2012, which indicated business as usual. The company posted a net profit of $64.3 million for the fourth quarter and $273 million for the year, 72% more than in 2011.
Delek US, founded in 2001, operates two refineries: one in Tyler, Texas, acquired in 2005; and El Dorado in Arkansas, acquired in 2011. The two refineries have a refining capacity of 140,000 barrels of oil a day. The company's retail activity includes 373 gas stations and convenience stores, and fuel marketing activity.
Published by Globes [online], Israel business news - www.globes-online.com - on March 12, 2013
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