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Real-Time news about Delek Glbl (London Stock Exchange): 0 recent articles
|rj allen: Further to the special resolution that the Company be summarily wound up, which was passed in the extraordinary general meeting of Company earlier today, the board of DGRE announces that it resolved to declare an interim liquidation distribution of 74 pence per each DGRE share (the "Distribution"). The Distribution is payable to shareholders on the register at 12th February 2014, and is payable on 7th March 2014 (or as soon as practicable thereafter).|
|grollfam: Delek Real Estate debt settlement approved
Bondholders will receive up to NIS 848 million - 35% of the NIS 2.1 billion owed.
Avi Shauly 10 Sep 12 18:20
Over a year since Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, first asked its bondholders for a debt settlement, a deal has been reached. Most of the company's unsecured creditors, led by financial institutions, voted in favor of the proposed settlement. After Tshuva increased his contribution to it at last minute, Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) and Menorah Mivtachim Holdings Ltd. (TASE: MORA) both agreed to the deal.
Yesterday, Tshuva increased the compensation to the bondholders by NIS 18 million to solve the dispute between them. The settlement involves a 65% discount on the NIS 2.15 billion owed to the bondholders, who will receive NIS 757-848 million: NIS 100 million in cash, which will be paid immediately; NIS 657 million in the new Series 1 bond, which will be repaid over six years, and bear 6% annual interest; and NIS 91 million in the new Series 2 bond, which will repaid in seven years. The final payment will only be made if the shareholder of Delek Group Ltd. (TASE: DLEKG), which Tshuva also controls, reaches NIS 1,200. Its share price closed at NIS 582 today.
Tshuva is also offering to pay Delek Real Estate shareholders NIS 21.5 million, even though he has no obligation to do so.
Delek Real Estate, which mainly operates in income-producing real estate in Western Europe, slid into trouble in 2008 with the collapse of the value of its properties, and its secured creditors called in their loans. At the time, the financial institutions rejected various proposals for debt settlements - settlements that today they can only dream about. The company's condition steadily deteriorated, but Tshuva personally injected capital into the company whenever its cash reserves ran out, and it was necessary to meet a payment. That ended last summer, when it officially requested a debt settlement and put an end to the rumor mill.
The bondholders' representatives will meet tomorrow evening, and the results will be officially published.
Published by Globes [online], Israel business news - www.globes-online.com - on September 10, 2012|
|grollfam: NOT GOOD NEWS.......................................
Delek Real Estate's Kinnaird House sale falls through
Last week, the company announced that it had signed a non-binding letter of intent to sell the property for £55 million.
Globes' correspondent 14 Jun 12 11:39
Delek Real Estate Ltd. (TASE: DLKR) today announced that the sale London's Kinnaird House at 1 Pall Mall, has fallen through. Last week, the company announced that it had signed a non-binding letter of intent to sell the property for £55 million.
Delek Real Estate also announced that the lenders to the companies that hold its National Car Parks Ltd. portfolio in the UK are in breach of their financial covenants, after failing to make payments on the loans. The lenders therefore notified the company that they have the right to call in the loans immediately, and that they were reserving the right to do so. Delek Real Estate holds both Kinnaird House and National Car Parks through Delek Global Real Estate Ltd.
Delek Real Estate's share price fell 2.6% in morning trading to NIS 0.15, giving a market cap of NIS 60 million.
Published by Globes [online], Israel business news - www.globes-online.com - on June 14, 2012|
|kenny: Another sale. Last valuation £47.4m at 31.12.08 (later individual property valuations not disclosed by the company). Not a bad price, some scope for a divi/buyback?!?!
Delek Real Estate sells UK property for £55m
The company will use £46.2 million of the proceeds to repay the secured loan on London's Kinnaird House.
7 June 12 13:33, Globes' correspondent
Yitzhak Tshuva-controlled Delek Real Estate Ltd. (TASE: DLKR) has sold another property held through Delek Global Real Estate Ltd. - Kinnaird House at 1 Pall Mall in London for £55 million. The company will use £46.2 million of the proceeds to repay the secured loan on the property. The five-storey office building was built in 1923. The sale is due to be closed on July 10, subject to due diligence, and the signing of a binding contract.
Delek Real Estate's share price rose 0.6% by mid-afternoon to NIS 0.16, giving a market cap of NIS 62 million.|
|kenny: Bondholders making additional demands even after signing an agreement in principle. I think I said it previously - it must be very difficult to do business in Isreal.
Tshuva: No more cash for Delek Real Estate
Yitzhak Tshuva has notified the company that he will stop supporting it financially from May 6.
24 April 12 09:38, Avi Shauly
Yitzhak Tshuva yesterday notified Delek Real Estate Ltd. (TASE: DLKR) that he will cease to support the company from May 6, after the company's bondholders kept on making new demands, even after signing an agreement in principle for a debt settlement and Tshuva made concessions to their position. Tshuva sent the letter after last-minute negotiations on a settlement between Delek Real Estate CEO Eran Meital and the bondholder representatives broke down yesterday.
If the bondholders do not quickly reach a deal with Delek Real Estate and Tshuva, the court will reportedly accept the petition of the Series 25 bondholders to liquidate the company.
A source close to Tshuva said, "We've stopping playing games. The bondholders went too far. They've crossed every line with their demands, and the time has come for the court to decide."
Tshuva also sent the letter to the court.
This week, representatives of Delek Real Estate and the bondholders continued to wrangle over the details of a possible debt settlement. "The bondholders' conduct proves that they don't really want a settlement. They don't understand that the company is on borrowed time," said a source close to the company earlier this week, in response to media reports that a deal was near.
That same day, Delek Real Estate stated in response to media reports of an agreement that there was in fact none, and that its possible on liquidation was unchanged.
"The bondholders have chosen liquidation," said another source, summarizing the situation. "The company cannot continue to exist."
Delek Real Estate's share price fell 1% in early trading today to NIS 0.19, giving a market cap of NIS 76 million.
Published by Globes [online]|
|kenny: Everything closing in on DRE:
Leumi demands repayment of NIS 189m Delek Real Estate debt
Bank Leumi notified Delek Real Estate unit Carmel Beach Resort 89 Ltd. that it must repay the debt, which it guarantees.
Hillel Koren 9 Apr 12 12:00
Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, yesterday announced that subsidiary Carmel Beach Resort 89 Ltd., which guarantees a debt of the company to Bank Leumi (TASE: LUMI), last Thursday received a demand from the bank to repay a debt of NIS 189 million. The bank added that non-payment would result in the liquidation of NIS 400,000 in deposits in Carmel Beach Resort's accounts at the bank.
Delek Real Estate added that Bank Leumi told it orally that besides offsetting these deposits, the bank was not demanding repayment of the balance of the debt to it.
Last week, the trustee of Delek Real Estate's Series 25 Bond, Adv. Guy Gissin, asked the court to appoint an attorney as an observer with no management rights in the company as liquidator in the event that the debt settlement proposed by the company did not result in a binding settlement.
The observer will be able to participate in all Delek Real Estate board meetings, to demand and receive documents and other items he needs, including items on company transactions in previous years, to appoint experts, and, in general, to ensure that company affairs are managed properly in a way that does not discriminate against any of its creditors.
Delek Real Estate's share price fell 1.6% by midday today to NIS 0.18, giving a market cap of NIS 72 million.
Published by Globes [online].|
|grollfam: 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|
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: An earlier post expressed the view that if the buyout at 50p is withdrawn, the share price will collapse.
I am guessing that in view of the share price recovery of the property sector that DGRE has not participated in: the DGRE share price will rise if the bid is withdrawn!! DGRE will be able to "catch up" with the rest of the property sector e.g. it is the low buyout offer that is holding back the price from rising above it's current discount to 31.12.08 value of about 72%. As far as I am aware, no other company in the property sector is trading at such a massive discount.
Of course, I acknowledge the fact that if the buyout fails the initial share price reaction may well be downward but I think it will then correct upward - the holding company needs the dividend income so DGRE will need to keep paying dividends. I am also guessing that the independent directors will insist on retaining the quote - if Delek try and delist, when news of that reaches Israel it could trigger a panic in the Israeli quoted subsidiaries of the holding company.
An 11p - fully covered - annual dividend at a 53p share price is a yeild of 20.75% so I am guessing the scope for the share price to fall may be limited.
I have also "stress tested" the NAV of 188p per share at 31.12.08 and conclude that it is not excessive. Gross rental income was £164m on a valuation of £2,403m giving an implied rental yeild of 6.82%. That is not excessive albeit the average yeild has probably moved out since December 2008. The large fall in NAV in 2008 was mitigated by Sterling depreciating - a one off benefit of about 11p per share which may reverse over time. However, even after discounting for all of the above, current value probably exceeds 168p. Even putting an ultra conservative valuation on everything - which also means ignoring the £100m plus offer they have received for the NCP income stream - I struggle to see why a shareholder would accept anything less than 150p per share. I also think DGRE is by far the most vauable part of the Delek Real Estate sub-group.
For all of the above reasons, I am going to vote against the revised buyout proposal and continue to campaign to ensure that either it is abandoned or that the offer is revised to 150p per share. I think the threat to de-list is an empty threat but I am willing to hold shares in an unquoted entity because of the likely attractive dividends and also the hope that, eventually, the holding company will seek to buy out minorities on acceptable terms.|
|kenny: Here is my analysis, for anyone that may be interested, of the reasons for the spike in DGRE's share price that has occurred since the very large gas find off the coast of Israel was announced - by a partnership that includes Delek Group subsidiaries.
The gas find probably means that Delek Group and its subsidiaries will be able to roll over their loans and bonds as they fall due and that they will be rolled over on reasonable and not expensive terms. All of this seems to be confirmed by the fact that the quoted bonds in Delek Group have leapt by 70% this month, since the gas find was announced, from their previous junk status. Although this gas may not be pumped for three or more years, this find also confirms that other exploration rights, nearby and also on the same line to Cyprus, held by Delek Group subsidiaries also have substantial potential value
Given that background, I now turn to possible explanations for why the DGRE share price has powered ahead in such a short period of time, once again, since the gas find was announced. In relation to assets, the broker has predicted a NAV of 217p at 31 December 2008. Despite having a large shareholding in DGRE, even I find that too high a figure to contemplate. However, even a value of 150p, say, is a multiple of the current share price.
In relation to dividends, based on the above assumptions, it would appear reasonable to assume that DGRE can keep paying out a dividend of about 11p per annum, that is 5.5p every six months. On this basis the yield is very attractive, if that is not an understatement!
I wish the above lateral thinking had occurred to me when the share price was about 25p rather than today's level. Nevertheless, I have bought some more today because, if the above analysis proves correct, even today's share price is cheap in the extreme.
Please note that none of the above is intended as advice and each investor must do their own research. I am a long term investor and do not believe that a company like DGRE, with limited availability of stock and wide spreads, should be bought with a short term horizon. From a long term perspective, DGRE suits my requirements of good income with capital return a secondary consideration (it has to be in these times of falling commercial property values!) because I do not need access to the capital for a minimum of 5 years and more likely 10 years.
I hope my comments provide some degree of assurance for holders who bought shares in DGRE at much higher levels, like me, but be wary of all posts on bulletin boards, including mine as I am "talking my own book" and many people these days are not investing but speculating for a day or a week.|
Delek Glbl share price data is direct from the London Stock Exchange