TEL AVIV -- The Delek Group said that on May 13, 2014, its subsidiary, Delek US Holdings Inc., published a tender offer under a shelf prospectus to sell 9.2 million shares of Delek US held by Delek Group (through a subsidiary, Delek Hungary Holding Liability Co.) in a secondary market.
Delek Group is one of Israel's major integrated energy companies. Delek Group and its partners are now developing a portfolio of global exploration, development and production assets. It also has a number of assets in downstream energy, water desalination and the finance sector.
Brentwood, Tenn.-based Delek US is a diversified downstream energy company with assets in petroleum refining, logistics and convenience store retailing. Through Mapco, it operates c-stores under the Mapco Express, Mapco Mart, East Coast, Fast Food & Fuel, Favorite Markets, Delta Express and Discount Food Mart brands.
In accordance to the tender offer, the underwriters were given an option to purchase the additional amount of 1.38 million shares of Delek US within 30 days.
On May 15, the pricing of an underwritten secondary offering of Delek US was $30 per share.
Completion of the tender offer is expected to close on May 20 (subject to fulfillment of customary conditions for the tender offer completion), and at that time, Delek Group will sell 9.2 million shares of Delek US for a total of approximately $276 million (before underwriting fees).
After the sale, Delek Group will hold through Delek Hungary approximately 5.84 million shares of Delek US, representing approximately 9.8% of the capital share of Delek US.
The company will evaluate the accounting implications of the above transaction on the financial statements.