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Delek Group sold a part of Delek U.S

Staff writer |
Delek Group reported that it sold, through a subsidiary, a portion of its holdings in Delek U.S. Holdings Inc. in an off-market transaction to a foreign financial institution.

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Delek Group sold 1,500,000 ordinary shares of Delek U.S. at the price of $27.78 per share for a total consideration amount of approximately $42 million (approximately NIS 149 million). The company has completed the examination of the accounting implications, and included discussions with the Israel Securities Authority. As a result, Delek Group would cease to consolidate the financial statements of Delek U.S. from the second quarter of 2013.

The company will record in its financial statements for the second quarter of 2013, which will be published towards the end of this month, profit after tax for the sale and the investment balance valuation of holdings in Delek U.S., at an estimate of between NIS 450 to 500 million.

The balance of the investment in Delek U.S. will be revalued in the financial statements as of June 30, 2013, and the result for the third quarter from the sale is not expected to be a significant amount.

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