Delek Energy seeks bigger stake in Avner Oil partnership

Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Energy Systems Ltd. (TASE: DEOL) today published a shelf prospectus for an offering through an exchange offer to purchase of 517,300 Delek Energy shares for 347 million shares in Avner Oil and Gas LP (TASE: AVNR.L). Delek Energy will offer one share for each 670.65 partnership units in Avner.

The offer to purchase does not apply to Delek Energy’s sister company, Delek Investments and Properties Ltd., and subsidiary, Avner Oil Exploration Ltd., which currently own 47.27% of Avner altogether. Delek Energy is seeking to acquire 10.4% of Avner. Implementation of the offer to purchase depends on a favorable response by owners of 262.7 million partnership units in Avner, amounting to 75.73% of the units in the offer to purchase. Delek Energy has the right to make new offers to purchase in the future, regardless of the outcome of the current offer, at the same or different terms, at its sole discretion.

In the event of a full response to the offer to purchase, Delek Energy will increase its stake in Avner from its current 38.12% to 48.5%. If the offer is successful, it will boost Delek Energy’s chances of inclusion in the Tel Aviv 100 Index at the upcoming review. The company’s low liquidity currently keeps it out of the index.

Delek Energy’s share rose 14% by mid-afternoon today to NIS 816.10, giving a market cap of NIS 3.3 billion. Avner’s share rose 3.8% to NIS 1.20, giving a market cap of NIS 3.92 billion.

Published by Globes [online], Israel business news – www.globes-online.com – on November 8, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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