Sources inform ''Globes'' that that Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has received six bids in the tender for UK motorway restaurant and inn chain RoadChef. Sale manager NM Rothschild and Sons has not yet closed the tender because one bidder asked for a few days' delay. Delek is reportedly asking the same price at which it acquired the company.
In the next phase, two or three finalists will be allowed to begin due diligence, with the deal's completion anticipated in March.
RoadChef operates 29 sites with 25 gas stations and 15 inns of the Premier Inn chain, restaurants, cafes, and convenience stores. Delek Group acquired RoadChef in March 2007. Delek Real Estate Ltd. (TASE: DLKR) subsidiary Delek Global Real Estate Ltd. (AIM:DGRE) acquired 75% in the chain for ₤158 million, at a company value of ₤217 million, and Delek Petroleum Ltd. (TASE: DLKP.B7; DLKP.B8) acquired the other 25%. Delek Real Estate financed part of the acquisition with a $150 million loan from Merrill Lynch.
If RoadChef is sold for its purchase price, Delek Real Estate will report no capital gain on the sale, but the proceeds will enable the company to substantially reduce its $1 billion consolidated debt. Meanwhile, Menorah Mivtachim Holdings Ltd. (TASE: MORA) boosted its stake in Delek Global Real Estate to 4.45%, becoming a party at interest in the company.
In December, Delek Real Estate CEO Ilik Rozansky unveiled the company's sell-off plan of properties worth more than NIS 1 billion over the coming year. Rozansky is seeking to reduce the company's debt, and he has obtained the support of shareholders and bondholders. Delek Real Estate's financial report for the third quarter states that the company's short-term liabilities totaled NIS 4 billion at the end September 2008, and its long-term liabilities totaled NIS 17.7 billion.
Delek Global Real Estate rose 4.7% on London’s Alternative Investment Market (AIM) yesterday to ₤0.335, giving a market cap of ₤88 million. Delek Real Estate's share rose 3% in early trading today to NIS 3.57. Delek Group's share rose 2.6% to NIS 289.20.
Published by Globes [online], Israel business news - www.globes-online.com - on January 28, 2009
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