Delek Group Continues to Strengthen Its Capital: Advances Process to List Ithaca Shares for Trading in London and Israel through a Voluntary Exchange of Delek's Debentures for Ithaca Shares
HERZLIYA, Israel, Jan. 27, 2021 /PRNewswire/ -- Delek Group (TASE: DLEKG) (US ADR: DGRLY) has announced today that the Company's Board of Directors has instructed Management to examine the possibility to advance the process to list Ithaca shares for trading on the London Stock Exchange also by way of an exchange purchase offer through a voluntary tender to be offered to Delek Group's debenture holders. As part of the process being assessed, there will be parallel listing of Ithaca shares for trading in Israel too, in accordance with the Tel Aviv Stock Exchange dual listing rules.
In the tender, debenture holders will be offered the possibility to exchange a part of the debentures they are holding for marketable shares of Ithaca up to a maximum of 25% of Ithaca, so that after completion of the process Delek Group will hold 75% of Ithaca shares.
The process being assessed follows a long series of major steps successfully carried out by Delek Group during 2020, which to date have realized it an overall cash flow of over NIS 2 billion. Together with dividends distributed by subsidiaries and other actions the Group has taken, up until now the Company has received NIS 3.4 billion. These amounts have been used for early repayment of all the liabilities to the banks and payments of principal and interest of the Group's debentures, on due date and in order.
The Company's present offer is in addition to the other steps that Delek Group is promoting, and is in line with the Group's strategy to strengthen capital and liquidity, and contains major benefits both for the Group and for the holders of its securities:
- A significant reduction in the debenture balances of Delek Group (early repayment);
- Debenture holders will have the possibility to vary their investments and their exposure to the Company's assets;
- Strengthening the Group's capital;
- Accelerating the process to turn Ithaca into a public company;
- Creating a platform that will allow the Company to promote financing processes that it intends to activate using Ithaca shares, as well as carrying out other equity actions in connection with its holdings in Ithaca, at preferential terms for the Company and at shorter timetables.
Idan Wallace, President and CEO of Delek Group: "Further to the series of complex actions that were successfully carried out last year, in line with the targets we set and our commitments to the debenture holders, we are continuing to initiate deals and to assess new steps that will lead to strengthening the Group's capital and continuing the improvement of its financial positioning. The process being assessed complements other steps we are planning in relation to our holdings in Ithaca, and will also support their success, and contains the potential for a major value creation for Delek Group and the holders of its securities."
About Delek Group
Delek Group is an independent E&P company with activities in the UK North Sea and the East Mediterranean. Delek Group has significant holdings in the Leviathan and Tamar natural gas reservoirs in the East Mediterranean (Israel's territorial water), with reserves and resources of more than 30 TCF and annual production capacity of more than 20 BCM. These reservoirs are major natural gas suppliers to the growing markets of Israel, Egypt and Jordan and Delek continues to lead the region's development into a major natural gas export hub. Through its wholly owned subsidiary Ithaca, Delek Group holds high-quality oil and natural gas assets in the UK North Sea totaling approximately 260 million barrels of oil equivalent (boe) and producing about 25 million boe per year. Delek Group is one of Israel's largest and most prominent companies with a consistent track record of growth. Its shares are traded on the Tel Aviv Stock Exchange (DLEKG: IT).
For further information, contact the spokespersons of Delek Group (Together):
Roi Argov, +972-54-680-5000, Together
Ronen Moshe, +972-50-888-5631, Together
Limor Gruber, Head of Investor Relations, Delek Group, +972-50-523-9233
SOURCE Delek Group Ltd
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