Israel's Delek Group sells stake in Barak Capital for $69 mln

TEL AVIV, June 24 Tue Jun 24, 2014 6:27am EDT

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TEL AVIV, June 24 (Reuters) - Israeli energy and insurance conglomerate Delek Group said on Tuesday it agreed to sell its 46.6 percent stake in Barak Capital to Eyal Bakshi, controlling shareholder of Barak Capital, for 237 million shekels ($69 million).

Delek said 100 million shekels will be paid in cash in two instalments while the remaining 137 million will be granted as a three-year loan by Delek to Barak. The loan will carry annual interest of 7 percent.

"Currently, the company is examining the accounting implications of this agreement, if the transaction is completed, on the financial statements," Delek said in a statement.

The sale comes as Delek, which owns stakes in the giant Tamar and Leviathan natural gas fields off Israel's Mediterranean coast, seeks to divest its financial holdings.

Barak Capital is an investment group focused on proprietary trading in securities, derivatives and financial instruments.

($1 = 3.4411 Israeli Shekels) (Reporting by Tova Cohen)