Update With Regard to the Possibility of Selling Delek Europe in Light of the Submission of the Full Tender Offer for Delek Israel
Tel Aviv, April 09, 2013. Delek Group (TASE: DLEKG, OTCQX: DGRLY) announced that Delek Petroleum Ltd. ("Delek Petroleum"), the Company's fully owned subsidiary, released today, April 9, 2013, a full tender offer for NIS 1 ordinary shares of Delek, the Israeli Fuel Company, Ltd. ("Delek Israel"). Further to section 1.26.1 of the Period Report for 2012, dated March 24, 2013 (Ref: 2013-01-016789), and further to the immediate report dated February 18, 2013 (Ref: 2013-01-041460) with regard to the possibility of selling part or all of the Company's holdings, directly or indirectly, in the foreign subsidiary Delek Europe BV that is also held indirectly by Delek Israel ("Delek Europe"), the Company is pleased to provide an update as follows:
In the scope of the process to sell Delek Petroleum's holdings in Delek Europe, which is in advanced stages, the Company has received from international companies during the past week, a number of non-binding preliminary bids (Indicative Offers) for the acquisition of the entire holdings of Delek Petroleum in Delek Europe, directly or indirectly. .
It is noted that these offers are preliminary proposals, and are not binding to the bidder nor Delek Petroleum, and are subject to, among others, preconditions, due diligence and the completion of information and may be used as a basis for negotiations . Delek Petroleum will review these offers, as mentioned above, and is expected to invite certain bidders for an additional stage of discussion and disclosure of information prior to receiving any binding offers.
Delek Petroleum will explore the possibility of negotiation with those bidders whose proposals reflects an enterprise value of Delek Europe of approximately EUR 800 million, subject to any adjustment that may be determined by the parties . At this early stage, it is not possible to estimate what will be the final value of the transaction when completed, when it will be completed and what the chances are for its completion.
Forward-looking statement: The above information with regard to the received bids and the offered prices, and about the possibility of negotiating with those bidders who have submitted offers as mentioned above, are forward-looking statements as defined in section 32A of the Securities Law, under which there is no certainty that it will materialize, in whole or in part, and which may materialize substantially differently, and there is no assurance that a binding agreement will be signed and in what value.
This is a convenience translation of the recent HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on April 09, 2013.
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 33 TCF .
In addition, Delek has built an extensive network of global downstream assets, including 1,900 gas stations and convenience stores in the U.S., Europe and Israel, and petroleum refineries in the U.S. Delek also holds significant interests in leading water desalination, power generation, insurance and automotive companies .
In 2012, the Company's revenues were NIS 72 billion ($ 19 billion). Delek Group's shares are traded on the Tel Aviv Stock Exchange (TASE: DLEKG) as part of the TA25 Index.