Amar Reiter Jeanne Shochatovitch & Co. Israel law firm (AYR) acts for buyers in landmark NIS 525 million acquisition of Delek Israel
Categories: Corporate and M&A
Amar Reiter Jeanne Shochatovitch & Co. Israel law firm (AYR) has acted for Israeli real estate company Lahav L.R. Real Estate Ltd. (Lahav) and B.G.M Ltd. as they bought a 70% stake in Delek Israel, formerly held by Delek Group, controlled by Israeli billionaire, Mr. Yitzhak Tshuva.
Delek Israel is one of the main assets of the indebted Delek Group Ltd, controlled by Tshuva. Delek operates one of Israel’s largest chain of gas stations with 239 gas station, of which 178 are independently operated, as well as 196 convenience stores. The Delek Group also has stakes in Israel’s two largest offshore natural gas fields.
In Q2 2020, Delek posted a loss of NIS 326 million.
Under the terms of the transaction, the deal values Delek Israel at NIS 750 million. The sale will allow Delek to repay its debts back to the banks, which totals nearly NIS 350 million at the moment. It will also allow Delek Drilling to break off from Delek Israel, which currently holds a lien on the energy exploration project.
After several months
of challenging negotiations, Adv. Igal Doron, Adv. Assaf Lapid and their teams from AYR represented the purchasers.
