Rami Levy, the controlling shareholder in Rami Levy Chain Stores Hashikma Marketing 2006 Ltd. and his partner income producing real estate company Lahav LR Real Estate Ltd. are close to signing an agreement to buy 70% of Delek Israel, controlled by Yitzhak Tshuva, at a company valuation of NIS 750 million. Thus Rami Levy and Lahav will pay NIS 525 million for the stake.
As far as is known, the parties to the deal have exchanged contracts and approval is being sought from the financing banks. The value of the deal could potentially change in line with an additional distribution of dividends.
From Tshuva's point of view, this deal is preferable to the one with the Arbel Fund, with which he signed a memorandum of understanding (MoU), whereby it would invest NIS 450 million for a 20% stake of Delek Israel and annual returns of 10% on the investment.
Lahav is controlled by former Melisron Ltd. CEO Avi Levy. The company, which has income producing property in Europe and Israel in solar energy, has a market cap of NIS 389 million. Regarding Rami Levy, it is unclear whether he is buying Delek Israel with his private capital or through the retail supermarket chain.
Delek Israel is one of the country's four big gas station chains. The company has 238 gas stations around the country, of which it operates 179, and 195 convenience stores, of which it operates 161 and the others are franchisees.
Employees of Delek Israel have expressed the concern that if Rami Levy buys control of the chain, he will not allow the gas stations and convenience stores to operate on the Jewish Sabbath - Friday evening to Saturday evening.
Tshuva is being forced to realize his assets because of the debts owed by his holding company Delek Group Ltd.
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