DELEK GROUP LTD. Sale of Holdings in Barak Capital
Tel Aviv, June 24, 2014. Delek Group (TASE: DLEKG, OTCQX: DGRLY) ("the Company") is pleased to announce that on June 24, 2014 (the "Contract Date"), the Company entered into an agreement to sell all of its holdings (46.58%) in Barak Capital Ltd. (the "Barak Capital"), to Mr. Eyal Bakshi, owner of Barak Capital ("Mr. Bakshi").
The transaction amounts to approximately NIS 237 million, and includes payment by way of sale of shares, repayment of shareholder's loans and dividends (the "Consideration").
The parties committed to complete the transaction within 7 days from the Contract Date (the "Closing Date").
The payments will be made as follows:
- NIS 100 million will be paid in cash in two installments: NIS 40 million upon Closing Date and NIS 60 million within 45 days of the Contract Date.
- The remaining balance of the proceeds in the amount of approximately NIS 137 million will be granted as a loan by the Company to Barak Capital for the duration of approximately three years. This loan will carry an annual interest rate of 7% and will be repaid in accordance with the repayment schedule set by the parties. In order to secure the loan, all the shares sold were pledged in the Company's favor and financial covenants were set.
In addition the Company undertook to indemnify any claims and demands in specific issues from the past, with limits set on the period and the indemnity as stipulated in the agreement.
Currently, the Company is examining the accounting implications of this agreement, if the transaction is completed, on the financial statements.
This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on June 24, 2014.
The Delek Group, Israel's dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean's Levant Basin into one of the energy industry's most promising emerging regions. Having discovered Tamar and Leviathan, two of the world's largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets with total gross natural gas resources discovered since 2009 of approximately 37 TCF.
In addition, Delek Group has a number of assets in downstream energy, in water desalination, and in the finance sector.
For more information on Delek Group please visit www.delek-group.com
Contact
Dalia Black / Dina Vince |
|
distributed by
|
