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Delek Group to cut stake in Delek US to 9.8 pct
May 15, 2014 / 8:05 AM / 4 years ago

Delek Group to cut stake in Delek US to 9.8 pct

TEL AVIV, May 15 (Reuters) - Israeli conglomerate Delek Group said its stake in Delek US Holdings will fall to 9.8 percent and it will raise 954 million shekels ($276 million) from the sale of 9.2 million shares.

Earlier on Thursday, Delek US announced the pricing of the secondary offering of 9.2 million shares at $30 a share. The underwriters have been granted a 30-day option to purchase up to an additional 1.38 million shares of common stock from the selling stockholder at the same price.

The offering is expected to close on or about May 20.

Follow the offering, Delek Group said it will hold 5.8 million shares of Delek US and it is examining the effect of the sale on its financial results.

Delek US has assets in petroleum refining, logistics and convenience store retailing.

Delek Group, which owns stakes in the giant Tamar and Leviathan natural gas fields off Israel’s Mediterranean coast, has been seeking to divest other holdings to raise funds.

Last month Delek Group’s subsidiary Delek Europe Holdings agreed to sell Delek Europe BV to a foreign fund for 355 million euros ($486.7 million). It also agreed to sell a controlling 55 percent stake in its U.S. insurance business Republic Group for $121 million.

($1 = 3.4541 Israeli Shekels)

$1 = 0.7294 Euros Reporting by Tova Cohen

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