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Yitzhak Tshuva
Photo: Gil Yohanan
Delek acquires Cohen Development
Group controlled by Yitzhak Tshuva buys 51.9% of company's controlling stock for NIS 275 million, topping its market cap on Stock Exchange by 47%
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.

 

Click here to read this report in Hebrew

 

 


פרסום ראשון: 12.02.11, 08:24
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