Delek to Raise $613 Million From Unit Sales to Develop Leviathan

Delek Group Ltd. (DLEKG) is poised to raise as much as $613 million in the sale of two units to help it develop Leviathan, Israel’s biggest natural gas field, and focus on its oil and gas business.

The company said today it agreed to sell its Delek Europe B.V. gas stations unit to U.K. private equity fund TDR Capital LLP for 355 million Euros ($492 million). The deal comes a day after Delek reached an accord to dispose of a controlling stake in Republic Companies Inc. for $121 million.

“The move enables Delek to streamline its structure around oil and gas and to support the investments it needs for Leviathan,” Roni Biron, a Herzliya, Israel-based analyst at UBS AG, said today by phone.

Delek is the best performer on the TA-25 index in the past 12 months as the company sold stakes in non oil-and-gas assets and its Tamar field started production. Australia’s Woodside Petroleum Ltd. said today talks for an investment in Leviathan continue, after a deadline was missed in March. The shares gained 0.3% to 1,420 shekels at 1:24 p.m. in Tel Aviv.

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editors responsible for this story: Samuel Potter at spotter33@bloomberg.net James Doran

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