Delek Group, controlled by Yitzhak Tshuva (64.3%) and directed by Asaf Bartfeld has acquired 51.9% of Cohen Development on a NIS 530 ($141) market cap, topping the company's market cap on the stock exchange from this morning by 47%.
In addition to profits Cohen Development controlling shareholders will rake in, Delek Group will enjoy the largest stake in the profits – a NIS 2.4-2.9 billion ($640,000-770,000) capital gain.
The cause for the capital profit is Avner partnership's NIS 828 million ($220 million) share value in Delek's books. Once the company is acquired, according to accounting principles, it will list the company on its market cap from Thursday morning – NIS 7.2 billion ($1.92 billion).
The acquisition opens up the door for Delek to distribute a massive dividend to its shareholders, principally Yitzhak Tshuva who will enjoy a 64.3% dividend.
Tshuva will be able to use the cash flow to meet his financial obligations to Delek Real Estate's debtors after he suggested a debt restructuring comprising a NIS 250 million ($66 million) payment and a 50% haircut on the total debt, which is NIS 2.1 billion ($560 million).
The sellers will also be allowed to acquire Avner and Delek Drilling stock from Delek at a total of NIS 150 million ($40 million).
Upon closing, the sellers will gain options to acquire the partnerships at the closing price – half the options may be exercised within six months after closing and the other half – within a year of closing, meaning that in the event that the writers wish to acquire the shares, the effective price on the deal for Delek drops.