Sources with knowledge of the deal have recently disclosed that Citibank has pledged to sell 12% of shares in Delek Group for $57 million to Amir Dayan (אמיר דיין). Dayan is a well-known Israeli businessman operating primarily in real estate development in Germany, active in the European hotel business and real estate field since 2005.
Multiple sources reported that Dayan had reached an agreement with Yitzhak Tshuva, the controlling owner of Delek. Dayan promised to sell back to Tshuva 7% of the shares he purchased from Citibank. Dayan offered the shares at a premium price of roughly $35 million, more than the $33 million paid to Citibank. In the middle of these developments, a new player emerged. It was reported by reputable sources that Teddy Sagi offered to buy the shares for $62.7 million, $5.7 million more than the amount paid by Dayan, however Sagi’s bid was ultimately rejected in favour of Dayan’s.
According to the report, Citibank sold the shares to cover the balance of the loan held by the Delek Group. Delek Group owns a controlling interest in Delek Drilling, holding 59.2% of the company’s shares.
The sale to Dayan follows unsuccessful attempts by Citibank to reach an extension agreement with Delek Group. Citibank made the original loan for $150 million to Delek Energy in 2013. The balance, which is $57 million, was to be paid in a single installment due in April 2021. The loan’s collateral is a 15% stake in Delek Drilling. It is estimated that the collateral’s value today is NIS 540 million, representing roughly 260% of the balance due on the loan.
In the meantime, Delek and Tshuva have made strategic moves to improve their cash flow. They sold 20% of desalination engineering shares for NIS 170 million to Group Alpha 2 of Avshalom Felber, Amir Lang, and other institutional investors. Delek Group states they are doing everything possible to meet their obligations. There is no reason for the bank to take unilateral action, especially now as the markets continue to struggle due to the corona crisis and oil price volatility. The company says they remain focused on their corporate goals and objectives, subject to the challenges being faced by the entire oil industry. They say to all those who have fantasies about hurting the company that Delek Group remains strong and will survive the current economic crisis.
The Dayan family (משפחתו של אמיר דיין) is primarily involved in the rental real estate market in Germany. Their strong liquidity keeps them at the forefront of the industry despite the Corona crisis. Amir Dayan is also a shareholder in various other public and private real estate projects.