TEL AVIV -- Delek Group Ltd., the Israel-based energy company controlled by Yitzhak Tshuva, sold three million shares at $25.30 per share of Delek US Holdings Inc., or 5.05% of the company, for $76.5 million (NIS 306 million), according to a report by Globes. It sold the shares to a foreign financial institution, which it did not name publicly.
Delek Group expects to report a capital gain of $38.1 million (NIS 153 million) on the sale in its financial report for the third quarter.
Last month, Delek Group sold 5% of Delek US for $71 million (NIS 285 million) and a capital gain of $33.37 million (NIS 134 million). Altogether it has sold $149.43 million (NIS 600 million) worth of Delek US shares, for a capital gain of $74.73 million (NIS 300 million).
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Both transactions were off-floor sales to Barclays Bank plc, which sold them to its customers. Delek Group president and CEO Asaf Bartfeld told the newspaper, "We're a holding company, and we sell in times of rising prices and high values, just as last year we sold shares in Noble Energy Inc. and Delek Automotive Systems Ltd."
After the sale, Delek Group owns 56.82% of Delek US, which means that Delek Group still has future potential profits from the company, the report said. The latest selloffs will create value for Delek Group, allowing it to continue distributing dividends. Tshuva needs money to repay bank debts and to implement the debt settlement for Delek Real Estate Ltd.
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.
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.