Delek Group Sells 5% of Delek US
Unnamed foreign financial institution pays $71.5 million
TEL AVIV -- Israeli energy company Delek Group Ltd. reported that on August 9, following the close of trade at the New York Stock Exchange, the company's subsidiary exercised a transaction outside of the exchange to sell a portion of its holding in Brentwood, Tenn.-based Delek US Holdings Inc. to a foreign financial institution, which it did not name publicly.
The transaction included the sale of three million regular shares of Delek US that represents approximately 5.15% from the equity shares of Delek US at a price of $23.85 (U.S.) a share and a total of approximately 285 million shekels ($71.5 million U.S.).
Following the sale, the company, through its subsidiary, holds 36,736,432 shares in Delek US, representing approximately 62.9% from the equity shares of Delek US.
The sale reflects an accounting profit (before tax) of approximately 134 million shekels ($39.4 million U.S.) that will be reflected in the third-quarter results as an increase in equity for its share in equity fund from deals with rights owner that do not provide control.
Delek US Holdings is an integrated downstream energy business focused on petroleum refining, the wholesale distribution of refined products and convenience store retailing. The refining segment consists of refineries operated in Tyler, Texas, and El Dorado, Ark., with a combined nameplate production capacity of 140,000 barrels per day. The marketing and supply segment markets refined products through a series of owned and third-party product terminals and pipelines. The retail segment supplies fuels and merchandise through a network of approximately 374 company-operated convenience store locations operated under the MAPCO Express, MAPCO Mart, East Coast, Fast Food & Fuel, Favorite Markets, Delta Express and Discount Food Mart brand names.
(See Related Content below for recent CSP Daily News coverage of Delek US.)
The Delek Group, one of Israel's leading integrated energy companies has an extensive network of global downstream assets, including 1,900 gas stations and convenience stores in the United States, Europe and Israel, and petroleum refineries in the United States.