Israel's Delek Group sells Europe operations for 355 mln euros

TEL AVIV, June 29 Sun Jun 29, 2014 3:44am EDT

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TEL AVIV, June 29 (Reuters) - Israeli conglomerate Delek Group said on Sunday its subsidiary Delek Europe Holdings signed an agreement to sell Delek Europe BV to a foreign fund for 355 million euros ($484 million).

Delek said 180 million euros would be paid in cash in two equal instalments while the seller would extend a loan to the buyer for the remaining 175 million. The loan would be repaid within five years and three months with interest of 5 percent annually.

In April Delek said it had signed a memorandum of understanding for the sale of Delek Europe BV.

The deal is subject to regulatory approval, Delek said in a statement. The name of the buyer was not revealed.

Delek Europe was established in 2007 and made two big acquisitions: the operations of Chevron Corp in Belgium, the Netherlands and Luxembourg; and the operations of BP PLC in France. BP France's operations included hundreds of fuel stations and convenience stores and holdings in three fuel storage and marketing terminals.

($1 = 0.7331 Euros) (Reporting by Tova Cohen)

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