ALON HLDG ADR : Alon Holdings Announces Reduction of Permitted Marketing Margins for its Subsidiary, Dor Alon Energy in Israel (1988) Ltd.
09/01/2011| 06:45am US/Eastern
ROSH HAAYIN, Israel, September 1, 2011 /PRNewswire/ --
Alon Holdings Blue Square-Israel Ltd. (NYSE: BSI) (hereinafter: "Alon
Holdings") announced today that its majority owned subsidiary, Dor Alon
Energy In Israel (1988) Ltd. ("Dor Alon"), had received from the Israeli
Ministry of National Infrastructure a copy of an order pursuant to which the
Ministers of Treasury and National Infrastructure had decided to reduce by
11.5 agurot (including VAT) per liter the marketing margin in connection
with the sale of full service gasoline and by 18.4 agurot (including VAT)
per liter the marketing margin in connection with the sale of self service
The decrease in marketing margins is expected to have a material adverse
effect on Dor Alon's profits.
Dor Alon is examining its next steps, and it has submitted a petition to
the Supreme Court sitting as the High Court of Justice to suspend the
effectiveness of the order and even to nullify it.
Dor Alon is also examining steps to mitigate the effect on its profits
resulting from the reduction of the marketing margins.
Alon Holdings Blue Square- Israel Ltd. (hereinafter: "Alon Holdings")
operates in three reporting segments: In its supermarket segment, Alon
Holdings is the second largest food retailer in the State of Israel. As
pioneer of modern food retailing in the region, Alon Holdings, through its
100% subsidiary, Mega Retail Ltd., currently operates 209 supermarkets under
different formats, each offering a wide range of food products, "Near Food"
products and "Non-Food" products at varying levels of service and pricing.
In its "Non-Food" segment, Alon Holdings, through its 100% subsidiary Bee
Group Retail Ltd., operates specialist outlets in self operation and
franchises and offers a wide range of "Non-Food" products as retailer and
wholesaler. In addition, Alon Holdings holds approximately 78.38% of Dor
Alon, a subsidiary listed on the Tel Aviv stock exchange, one of the four
largest petrol companies and a leader in the field of convenience stores.
Dor Alon operates a chain of 193 petrol stations and 191 convenience stores
in different formats in Israel. In its Real Estate segment, Alon Holdings,
through its TASE traded 78.39% subsidiary Blue Square Real Estate Ltd.,
owns, leases and develops yield generating commercial properties.
This press release contains forward-looking statements within the
meaning of safe harbor provisions of the U.S. Private Securities Litigation
Reform Act of 1995. Forward-looking statements may include, but are not
limited to, plans or projections about our business and our future revenues,
expenses and profitability. Forward-looking statements may be, but are not
necessarily, identified by the use of forward-looking terminology such as
"may," "anticipates," "estimates," "expects," "intends," "plans,"
"believes," and words and terms of similar substance. Forward-looking
statements involve known and unknown risks, uncertainties and other factors
that may cause actual events, results, performance, circumstance and
achievements to be materially different from any future events, results,
performance, circumstance and achievements expressed or implied by such
forward-looking statements. These risks, uncertainties and other factors
include, but are not limited to, the following: the effect of the recession
in Israel on the sales in our stores and on our profitability; our ability
to compete effectively against low-priced supermarkets and other
competitors; quarterly fluctuations in our operating results that may cause
volatility of our ADS and share price; risks associated with our dependence
on a limited number of key suppliers for products that we sell in our
stores; the effect of an increase in the minimum wage in Israel on our
operating results; the effect of any actions taken by the Israeli Antitrust
Authority on our ability to execute our business strategy and on our
profitability; the effect of increases in oil, raw material and product
prices in recent years; the effects of damage to our reputation or to the
reputation of our store brands due to reports in the media or otherwise; and
other risks, uncertainties and factors disclosed in our filings with the
U.S. Securities and Exchange Commission(SEC), including, but not limited to,
risks, uncertainties and factors identified under the heading "Risk Factors"
in our shelf offering report filed in Israel, portions of which were
submitted to the SEC on Form 6-K on November 8, 2010. You are cautioned not
to place undue reliance on these forward-looking statements, which speak
only as of the date of this press release. Except for our ongoing
obligations to disclose material information under the applicable securities
laws, we undertake no obligation to update the forward-looking information
contained in this press release.
Alon Holdings Blue Square-Israel Ltd.
SOURCE Alon Holdings Blue Square Israel Ltd