Delek Glbl Share Discussion Threads

[grollfam] 26/1/2012 11:40

Delek Real Estate Bonds Rise to Six-Month High on Debt Offer

By Sharon Wrobel - Jan 26, 2012


Delek Real Estate Ltd. (DLKR) bonds rose to the highest level in almost six months and shares advanced as the property company controlled by shareholder Isaac Tshuva got a debt-settlement offer from dalet and heh debt holders.

Delek's 4.8 percent bonds due in February 2019 climbed to 42 agorot on the shekel, the highest since Aug. 4, pushing the yield down 3.03 percentage points to 49.93 percent at 12:29 p.m. in Tel Aviv. The shares jumped 10 percent to 0.273 shekel, poised for the highest close since July 24.

As part of the settlement offer, dalet and heh bondholders demanded Tshuva put up an 8 percent stake in Delek Group Ltd. as collateral should Delek Real Estate not meet its commitments. Delek Real Estate hadn't examined details of the offer and said negotiations were ongoing, with no agreement yet reached, according to a statement filed today with the Tel Aviv Stock Exchange. Delek Group shares advanced 1.2 percent to 798.10 shekels.

TheMarker reported Jan. 24 that Tshuva may assume as much as 1 billion shekels ($266 million) of the Ramat Gan, Israel- based company's liabilities and retain the controlling equity interest as part of a settlement.

Tshuva owns 50.79 percent of Delek Real Estate, according to data compiled by Bloomberg. Delek Group Ltd. (DLEKG), which is 64.36 percent owned by Tshuva, holds 4.99 percent of the property company.

To contact the reporter on this story: Sharon Wrobel in Tel Aviv at [e-mail]

[grollfam] 26/1/2012 11:39

Tshuva, Delek Real Estate bondholders reach deal
The proposed settlement includes a NIS 500 million capital injection by Tshuva, and NIS 400 million in guarantees.
Avi Shauly 26 Jan 12 13:01


Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, last night reached a debt settlement with some of its bondholders, after hours of negotiations. The debt of the company's Series 4 and 5 bonds totals NIS 1.5 billion. The Series 25 bondholders still oppose the deal, and will meet today. The settlement is due to be published today.
The bondholders' offer is valid through January 31, and Delek Real Estate and the bondholders have to reach agreement by then. The company notified the TASE today that it was studying the offer.

The proposed settlement includes a NIS 500 million capital injection by Tshuva, NIS 400 million in guarantees, including a lien on 8% of shares Delek Group Ltd. (TASE: DLEKG), which he also controls. Delek Real Estate's current NIS 2.1 billion bond debt will be written off, and the company will issue two new bonds totaling NIS 1.3 billion, which will be repaid over 16 years. The bondholders will also receive 45% of the company.

During the meeting, a bondholder told Tshuva, "Debts should be repaid. Return the dividends you received from Delek Real Estate, and sell some the companies you own. Pay your debts; you'll be poorer, but you'll be noble. You'll build Israel's confidence in corporate bonds."

Delek Real Estate's share price rose 10.9% by early afternoon to NIS 0.275, giving a market cap of NIS 109 million.

Published by Globes [online], Israel business news - www.globes-online.com - on January 26, 2012

[kenny] 19/1/2012 19:00

I read the article as merely a change in management of the portfolio. Nothing to suggest it has been sold albeit other German properties have been taken back by banks.

[grollfam] 19/1/2012 17:15

ARE THESE OUR DGRE GERMAN PROPERTIES ?????????????????????

Frankfurt: The Asset Management and Property Management NAI apollo group have adopted a Germany-wide portfolio of global investor DGRE. The portfolio of assets with a volume of € 400 million consists of 19 objects, including shopping centers, shopping centers and office buildings are, a year with a lettable area of ​​over 550,000 sqm and a rental volume of over € 30 million. Tenants of the portfolio items include Adidas, German Wave, Real and UniCredit.

The control of DGRE portfolio will take over the headquarters of the NAI group in Frankfurt, the care is provided by the regional offices in Dusseldorf, Munich and Berlin.

[paperclip3] 16/1/2012 22:50

I have already made so much on this stock that I can afford to wait and see

[flying pig] 16/1/2012 14:07

I will be betting that we get more in the medium term than 42p. So I am sitting on my hands.

I have been wrong before....

the pig

[tiltonboy] 16/1/2012 11:54

I think I will give this one a miss.

[kenny] 16/1/2012 11:50

I think I am going to tender half of what I could tender under this offer and see what the rest of this year brings!

Anyone else decided?

[grollfam] 14/1/2012 17:36

when does the tender close for the buyback?

Should the controlling shareholder not tender any shares, they could increase their beneficial holding from 85% to over 90 % on the cheap....

Just a thought........

[kenny] 13/1/2012 16:19

Derivative financial liabilities were £272.5m and deferred tax was £40m, both at 30.09.11. That totals £312.5m, divided by 157.6m shares in issue before this 4th buyback is about 198p per share of liabilities accrued on the balance sheet that may not be payable at the end of the day.

That figure of 198p per share goes up to 231p per share once the current share buyback is completed. Of course, reduce both 198p and 231p in so far as any part of the derivative financial liability or deferred tax eventually become payable.

Compared to 42p per share, the figures of 198p and 231p, which are potentially additional to the 42p per share currently offered, make the decision very, very difficult.

Comments and views would be appreciated?

[tiltonboy] 13/1/2012 15:54

This is where it becomes difficult, and is possibly an offer to refuse.

I think we need to try and get a firm handle on what the NAV is in practice, and how we believe the "swaps" contracts will play out.

Anybody willing to have a crack at the sums!

[grollfam] 13/1/2012 15:24

DGRE approval of exercise of fourth-tranche buyback



The board of directors of the Company (the "Board") announces that pursuant to an extraordinary general meeting ("EGM") of the Company held on 19 December 2011, by which the Company's shareholders (the "Shareholders") resolved to empower the Board to authorise the purchase by the Company of ordinary shares in its share capital under such general terms as further detailed within the letter from the chairman and the EGM notice dispatched to the Shareholders on 23 November 2011, the Board has resolved to purchase up to 22,619,048 ordinary shares in the share capital of the Company from its Shareholders equivalent to approximately 14.35% of the entire issued share capital of the Company at a price of £0.42 per ordinary share (the "Buyback"). The Buyback is conditional upon receipt of certain funds (the "Funds") by the Company no later than 24 January 2012 (or such later date to be notified by further announcement by the Company) so that if the Funds are not received by such date, the Buyback shall not be carried out.

Full details of the Buyback and the action requirements from the Shareholders may be found in the Buyback documentation dispatched to the Shareholders of the Company today.

[kenny] 27/12/2011 11:15

They may have an impact - but there have been so many sales stretching out over some time, that it is difficult to know what EPS are, after all of them. There has also been quite a lot of re-financing; the terms of which have not been announced by the company.

[tiltonboy] 27/12/2011 10:56

Will these sales affect dividend levels?

[kenny] 27/12/2011 10:49

Another property sale which will not yield any cashflow to DGRE:

Ahouvi's Ravad to sell Berlin Technical University stake
Because the property's value is currently less than the loan, Ravad is selling the property for nothing.
Globes' correspondent 27 Dec 11 09:34

Ravad Ltd. (TASE: RAVD), controlled by Igal Ahouvi will sell its 50% stake in the Technical University of Berlin campus. Because the property's value is currently less than the loan, and since the bank has the right's to revenue from the property, Ravad is selling the property for nothing.
Ravad said that the sale would have no material affect on its financial report, as the property is listed on the basis of its balance sheet value and the balance of the loan is zero.

Ravad and Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) subsidiary Delek Global Real Estate Ltd. bought the campus buildings in equal shares for €96 million in July 2007. The properties involved are two buildings covering 42,000 sq.m. altogether with classrooms, offices and administrative rooms on a four-acre lot with potential for development.

Published by Globes

[kenny] 25/12/2011 23:58

No effect on cash but NAV should improve to about 64p because of write off of the excess debt.

[grollfam] 25/12/2011 20:25

Kenny

Any cash flow to DGRE ???


Delek Real Estate sells German property for €50m


Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) sold its 60% rights to the Degi office building in Frankfurt Germany held through Delek Global Real Estate Ltd. at a value of €50 million (NIS 247 million) to the property's lender. Delek Global Real Estate owes the lender €110 million, and the lender will write off the balance of debt during the first quarter of 2012, fully settling it.
Delek Global Real Estate booked Degi at a value of €55 million at the end of September, and it will report a capital gain of €35 million from its share of the debt write-off.

Delek Real Estate Delek owns 85% of Global Real Estate, which still owns a number of properties in Germany, Switzerland, the UK, and Finland. It sold its last property in Canada last month.

Delek Real Estate's share price rose 1.4% in morning trading to NIS 0.22, giving a market cap of NIS 83 million.

[kenny] 14/12/2011 12:10

I have undertaken some more research to determine exactly what DGRE have left in Switzerland. I think they have two remaining properties being, Luna Park, Bern and World Trade Centre, Lausanne. Taking these at their March 2009 value, which is about where the most recent Swiss property sale occurred, take off 80% debt and take off 20% for minority interests leaves about £24m.

Assuming a buyback at 75p, which is a guess, that would equate to 20% of current issued share capital – before any buyback arising from the proceeds of recently selling the last property in Canada.

In conclusion, there may be some further buybacks during 2012, certainly more than I previously anticipated, albeit the pricing of those will depend on sale prices achieved and NAV at that time.

Large turkey's all around this Xmas - not least because we did not get stuffed by the 50p buyout proposal in 2009!!!

[kenny] 12/12/2011 16:12

Grollfam, I was factoring in the £30m gain when a property in Germany is sold - which takes us to a NAV of 64p - and also the fact that the derivatives should have bounced back in Oct/Nov. following the losses in Aug. and Sept. There may also be further accounting profits as further properties in Germany and Finland are repossessed by the banks. Of course, I am only guessing the price of the next buyback.

In terms of future buybacks, I think there is still at least one property in Switzerland if not more and there should be buyers for those albeit it is not clear if those disposals will produce any material net proceeds.

[grollfam] 12/12/2011 13:03

Kenny I think the buyback will be around the 50p level & then we will have to decide whether to accept or hold out for a bigger NAV in 2-3 years time when NCP matures..........

[kenny] 11/12/2011 10:20

Assuming a £26m buyback at 75p, that would equate to about 21.65% of the existing issued share capital.

[grollfam] 11/12/2011 09:49

GR8.....

Another big buyback/Divi coming...last of the free cashlow from DGRE for awhile sadly.......

[kenny] 11/12/2011 09:35

Another buyback, I think:

Delek Real Estate sells last Canadian property
The company sold the 5001 Yonge Street office building in Toronto, for C$108 million.
Globes' correspondent 11 Dec 11 11:05
Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) subsidiary Delek Global Real Estate plc has sold its last property in Canada, the 5001 Yonge Street office building in Toronto, for C$108 million (NIS 398 million).
Delek Global Real Estate books the property at a value of $C89.2 million (NIS 328 million) and the outstanding loan on the property is C$65 million (NIS 239 million).

The 28,966-square meter, 19-storey building in downtown Toronto is leased to the Royal Bank of Canada Inc. (NYSE; TSX: RY) and to government offices.
Delek Real Estate owns 85% of Delek Global Real Estate. Delek Real Estate's share price rose 5.2% in morning trading today to NIS 0.24, giving a market cap of NIS 90 million.

[kenny] 10/12/2011 23:19

Lenders to NCP poised to take over indebted car park group
Private equity deal that saw NCP group loaded with £450m of debt unravels as UK recession erodes number of corporate season-ticket holders
• Simon Bowers
• guardian.co.uk, Friday 9 December 2011 19.40 GMT
Lenders to the debt-burdened National Car Parks group have started drawing up plans for a restructuring that could result in their taking control of the business.
The company, which last year generated a turnover of £260m from more than 600 car parks, was loaded with debt in a private equity deal struck shortly before the credit crunch struck in 2007. It had previously been owned by the listed buyout group 3i.
At the time it appeared to be a highly stable business able to support a heavy debt, but NCP has struggled as the UK has been hit by the economic downturn. In particular, the group, which has borrowings of more than £450m, has been hit by a reduction in the number of corporate season-ticket holders.
Latest accounts for NCP's parent group, which is owned by an infrastructure fund run by the Australian bank Macquarie, show a balance sheet with net liabilities of £70.3m at the end of March.
The business made a pre-tax loss of £93.5m for the year to that date, hit in part by snow disrupting airports and by additional competition from new retail parks in Cardiff and Liverpool with their own parking facilities.
Lenders including National Australia Bank, Japan's Mizuho, Royal Bank of Canada and Lloyds Banking Group are understood to have worked with Macquarie as the business suffered, coming up with an restructuring plan last month.
However, Macquarie's failure to secure rent concessions from NCP's landlords has put the plans in jeopardy.
The banks and property groups remain at loggerheads over which parties should take the pain required to restore NCP, which employs 1,970 staff, to a sustainable footing.
The investment has been a disaster for Macquarie, which has twice already injected additional capital into the business to keep it from going bust. Without a more radical solution to the group's indebtedness, the group is facing rising rental and borrowing costs and is on track to breach its loan covenants. Ultimately, this could lead to lenders taking over ownership of the business.
The company is understood to have approached leading landlord Delek, an Israeli group, earlier this year with a request for a one-year rent reduction but was rebuffed. Delek reportedly refused the proposal because it was not considered to offer a long-term solution to NCP's debt issues.

[flying pig] 05/12/2011 07:50

kenny

Dividends of say 10-12p per year would imply a value of not less than £1+ on yield alone.

Probably better for us a very slow liquidation and ignore the asset valuation.