Sources inform ''Globes'' that Delek Group Ltd. (TASE: DLEKG) subsidiary Delek Petroleum Ltd. is expected to participate in the acquisition of assets of Chevron Corporation (NYSE:CVX) in the Benelux by Delek Group. Capital market sources believe that Delek Petroleum will own 25-30% of the company that will buy the Chevron gas stations.
The Chevron assets are due to be acquired for €400 million, which means that Delek Petroleum’s share of the deal will be at least €100 million.
“Globes” first reported that Delek Group was about to close the purchase of 750 gas Chevron stations in the Benelux. The acquisition would form a platform on which Delek Group plans to establish its position in the Western European fuel market. Chevron has already chosen Delek Group as the preferred bidder.
Energy market sources believe that Delek Petroleum’s participation in the deal could greatly boost its value ahead of a planned IPO on the Tel Aviv Stock Exchange (TASE). Delek Petroleum mainly operates in Israel. “Globes” first reported that Delek Group plans to float Delek Petroleum at a company value of at least $300 million by the end of this year.
Delek Petroleum posted a net profit of NIS 37 million on NIS 5 billion revenue in January-September 2006. Revenue rose 13% compared with the corresponding period of 2005. Delek Petroleum owns 3% of Delek US Holdings Inc. (NYSE:DK), which has a market cap of $1 billion, giving the stake a value of $30 million. Delek Petroleum’s participation in the Chevron deal is part of Delek Group’s strategy for its subsidiaries to collaborate.
“Reuters” reported earlier this week that the Delek-Chevron deal was completed, although there has not yet been any official confirmation to this effect. Delek Group said in response, “The deal with Chevron has not yet been signed, but progress has been made in the negotiations.”
Published by Globes [online], Israel business news - www.globes.co.il - on April 26, 2007
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