Although Delek Group Ltd. (TASE: DLEKG) sold Delek Real Estate Ltd. (TASE: DLKR) 18 months ago, resulting in Yitzhak Tshuva directly controlling both companies, the financially sound Delek Group continues to come to the aid of financially troubled Delek Real Estate.
Today, Delek Group today acquired Delek Real Estate's 75% stake in UK motorway services company Roadchef Ltd. for ₤86.25 million (NIS 500 million), reflecting a company value of ₤115 million. Delek Group will deduct NIS 380 million from the sale price to offset a loan to Delek Real Estate. The NIS 120 million balance will be paid to directly to Delek Real Estate's creditor bank.
The sale came a month after another Delek Group subsidiary, Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5), again extended repayment of a loan to Delek Real Estate.
Roadchef operates 27 motorway service stations with petrol stations, restaurants, hotels, and convenience stores across the UK.
Wholly-owned Delek Group subsidiary Delek Petroleum Ltd. (TASE: DLKP.B7; DLKP.B8) owns the other 25% of Roadchef. Delek Real Estate and Delek Petroleum acquired Roadchef for ₤159 million in 2007, and the company is burdened by a ₤164 million debt that has to be repaid over five years. The sale of Roadchef means that Delek Real Estate will reduce its liabilities by almost NIS 1 billion. Delek Real Estate made a NIS 162 million write-off on its investment in Roadchef.
Delek Real Estate's share price rose 2.1% by mid-afternoon to NIS 1.51, giving a market cap of NIS 449 million. Delek Group's share price rose 1.9% to NIS 979.70, giving a market cap of NIS 11.01 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on November 25, 2010
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