Jul.06, 2012 | 5:31 AM–Unusual trading patterns have been reported in Delek Energy Systems shares, as Delek Group makes its fourth tender offer to completely acquire the company.
Delek Group has been trying for a decade to acquire full ownership of Delek Energy. The group’s attempts failed three times – twice to the good fortune of Delek Energy’s shareholders, who would have missed out on returns of 340% and 513% over the performance of the Tel Aviv Stock Exchange’s TA-100 Index if they had accepted the offers in 2003 and 2005, respectively.
Delek’s last attempt, which failed in September 2011, was in the form of an swap offer. The group offered 36 participation units in Delek Drilling and 472 in Avner Oil & Gas Exploration in exchange for each share in Delek Energy.
But the group, controlled by Yitzhak Tshuva, did not conceal its intention to persist and try to delist Delek Energy from the TASE, so it was only a matter of time until it made its fourth tender offer.
The current attempt was also in the form of a swap offer. Delek Group is offering the Delek Energy shareholders 28 participation units in Delek Drilling and 431 in Avner, plus a cash component of NIS 70 – about 5.3% of the value of the transaction – for each share of Delek Energy. The total consideration being offered to the Delek Energy shareholders is NIS 1,330 per share – that is, without a premium relative to the share’s market price…Read More>>