Delek Israel Fuel Jumps Most Since 2008 on Bid: Tel Aviv Mover
Delek The Israeli Fuel Corp. (DLKIS) headed for the biggest surge in more than four years after a related company offered to pay a premium for all outstanding shares, a step that will help Delek Group Ltd. (DLEKG) simplify its structure.
Delek Israel Fuel jumped 13 percent, poised for the largest advance since December 2008, to 89.05 shekels at 2:25 p.m. in Tel Aviv as volume surged to 33 times the three-month daily average. Delek Group shares advanced 0.4 percent to 980 shekels, while the TA-25 benchmark equities index added 0.2 percent.
Delek Petroleum Ltd. offered to buy 13.1 percent of Delek Israel Fuel for 86.55 shekels a share, according to a filing with the Tel-Aviv Stock Exchange today. That’s 10 percent above yesterday’s 78.68-shekel closing price. The companies are based in Netanya, Israel, along with parent Delek Group, whose stock surged 32 percent in the past year as the nation prepared to start natural gas flow from the Tamar field, in which its units hold stakes.
“Delek Group is simplifying the structure of its group to increase investor visibility and focus attention on the holding company,” David Kaplan, a Tel Aviv-based analyst at Barclays Plc, said today by phone. “Delek management is focused on being a global integrated oil company.”
Delek Group, which also invests in insurance, water desalination and automotive businesses, is expected to sell assets to focus on natural gas production, Standard & Poor’s Maalot said in a report in January. The company owns stakes in the Tamar and Leviathan fields, Israel’s two largest natural gas reservoirs.
Tamar fuel started to flow on March 30 and is supplying Israeli companies including Paz Oil Co. and Makhteshim-Agan Industries Ltd.
To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at email@example.com
To contact the editor responsible for this story: Alaa Shahine at firstname.lastname@example.org