Delek Glbl Share Discussion Threads

[tiltonboy] 05/9/2009 13:49

Buyers and sellers(if there are any) will inform Jenkins at what price they have business. If buyers and sellers can be matched on price, then a deal will be done at that level.

[badtime] 05/9/2009 10:16

Thanks tilts....excuse me for being an ignoramous....whilst i understand what matched bargain is...how does it work in practice?

[tiltonboy] 04/9/2009 22:41

badtime,

Spoke to Yossi Friedman a few days ago. Hope to have a facility in place by the end of the month. Speaking to a couple of brokers, though I would put my money on J P Jenkins being appointed.

tiltonboy

[badtime] 04/9/2009 20:45

Anyone any further news re matched bargain service?

[kenny] 01/9/2009 16:15

The following article from an Israeli newspaper looks encouraging:

==================
Discount extends fresh loans to Delek Real Estate

By Michael Rochvarger

Tags: Delek Real Estate

Delek Real Estate is showing signs of recovery, and Israel Discount Bank has been enlisted to help them survive by extending loans totaling several hundred million shekels.

Discount is thus joining parent company Delek Group and the Phoenix insurance group, both of which belong to Yitzhak Tshuva, in lending Delek Real Estate money to cover its billions of shekels in debts to bondholders, banks and other creditors.

In June Delek Real Estate reached a five-year debt arrangement (covering both new and old loans) with Discount. The bank, headed by CEO Giora Offer, agreed to allow Delek Real Estate to pay only interest during the first two years, and to start paying off the principal in the third year.

Delek Real Estate now owes NIS 616 million to Discount. Capital market analysts figure that NIS 200 million of this is new loans.

After arranging its debts to Discount, Delek Real Estate is now negotiating with Bank Hapoalim and Bank Leumi regarding NIS 161 million in outstanding loans.

Delek Real Estate will be able to choose a combination of various types of loans from Discount: on-call, long-term loans; in shekels or in foreign currency.

The company notes in its financial report that these loans will carry annual interest of 2.5%, plus Discount's costs in raising the money for the loans and any charges connected with foreign currency loans, such that the effective interest will be about 5%.

Delek Real Estate finished the second quarter of 2009 with NIS 38.4 million in net profit, up from losses of NIS 105.4 million in the parallel quarter of last year.

Under the new debt arrangement, Delek Real Estate has undertaken to meet the following financial covenants: minimum shareholders equity of NIS 1 billion; a ratio of at least 2.75 between the value of the collateralized shares and the remaining debt; maintaining a minimal debt to market value ratio (financial obligations plus shareholder equity plus deferred tax obligations), minus the liquid portfolio and excluding non-recourse loans, of up to 70%; and maintaining shareholder equity for subsidiary Delek Global Real Estate of at least 12% of its assets. Delek Real Estate is so far complying with these covenants.

Meanwhile, investors are smiling on bond offerings again, and have regained much confidence in Delek Real Estate. Its bonds have been trading at yields of 8.5%-12.5%. Given these developments, Delek Real Estate is apparently considering raising more money by issuing a new series of straight (non-convertible) bonds, or possibly convertible bonds, or a combination of the two, with average durations until maturity of 3-5 years.

Another option being considered is the expansion of existing bond series.

In the past few weeks outgoing Delek Real Estate CEO Ilik Rozanski has been meeting with officials from the securities ratings companies, institutional investors and underwriters, in an effort to advance the fund-raising process.

The bond issue is expected to be led by a consortium of underwriters headed by Hapoalim IBI Underwriting, Menorah Underwriting and Clal Finances Underwriting.

The final sum as not yet been set, but will likely be NIS 100 million-NIS 200 million and will be used by Delek Real Estate to recycle existing loans.

As of June 30, 2009, Delek Real Estate and its fully-owned subsidiaries had NIS 524 million in cash and cash equivalents. By the end of 2010 Delek Real Estate must repay banks and bondholders NIS 665 million, and plans to meet these obligations by borrowing from financial institutions and its own subsidiaries (shareholder's loans), by selling off assets and by generating income.

Delek Real Estate's share price has risen 152% since the beginning of the year reducing its market cap to NIS 1.12 billion.

No comment could be obtained from Delek Real Estate for this article.
=======================================

[badtime] 26/8/2009 09:31

Emailed company for update on matched bargain facility...expect it to be up and running soon and will issue a notice to that effect ...no new info there...reply was almost instant.

[badtime] 19/8/2009 09:29

Div recd yesterday

[badtime] 15/8/2009 17:55

Kenny not tht many tbh 3k....if they wer in my sipp i'd look to hold...especially as i am on income drawdown currently...but i dont look to hold any share held outside my sipp

[kenny] 15/8/2009 12:33

badtime...how many you got to sell?

[badtime] 15/8/2009 09:59

Flying ..so u wud buy at under 60p...59.99 aftr div..deal! :)

[flying pig] 14/8/2009 21:03

Kenny & Tilton - that is true - the value is a damn sight more than 50p. But on a matched basis there may be some sellers that need cash now.

[tiltonboy] 14/8/2009 16:24

Kenny,

If I could be as optomistic as you on divs, I also wouldn't sell at this side of a quid. It would be good if they wound down the portfolio, in which case we could see nearer 150p.

tiltonboy

[kenny] 14/8/2009 16:22

If future dividends are paid at an annualised rate of, say, 11p, I will be receiving a yield of about 17% on the averaged cost of the shares I hold. Therefore, it is difficult to imagine a price at which I would be willing to sell my shares because I am not going to be able to achieve 17% reinvesting elsewhere.

At 125p per share the yield falls to 8.8% and although the shares are unlikely to trade at that level on a matched bargain basis, a yield of 8.8% is also out of reach elsewhere.

Apart from yield, I suspect that in the next two years or so, we may see some of the portfolio being liquidated with large returns of capital to shareholders. The combination of capital returns and the value of what remains could easily equal or exceed 125p. Other transactions e.g. the REIT proposal, may also emerge to enhance value for shareholders. Further, although, the commercial property market may not recover in that timscale, it will recover at some atage.

Therefore, the combination of an assured high dividend income and hope value in relation to capital returns convinces me I would be best advised to retain my shares, collect the dividends and see what transpires. Indeed, it may be tempting to buy more shares but I have such a large holding, that I cannot justify putting more capital in a single company.

[tiltonboy] 14/8/2009 11:51

That's wider than an MM price...lol...

[flying pig] 14/8/2009 11:44

If me buying under 60p - if me selling then over £1.50. This will pay dividends and be a cash cow - this is a high quality portfolio - where else can one get such returns in a sipp?

[tiltonboy] 14/8/2009 11:42

fp,

What do you call a sensible price?

[flying pig] 14/8/2009 11:39

A little August spending money is appreciated - and next week too.

I expect regular dividend injections as I think the parent needs the money. The portfolio throws off cash.


Chances are matched bargain and may be opportunity to buy some at sensible prices - we live in interesting times.

[grollfam] 14/8/2009 11:36

I think they would have to offer a minumum of 75-80p, but true value must be north of 125p

[tiltonboy] 14/8/2009 09:42

Given the sharp rally in Property companies, it will be interesting to see what sort of price the shares might trade at, when a facility becomes available.

Very encouraged by the dividend, and now happier to hold as unlisted than I was previously. Would still be tempted to sell at around 75p though.

[kenny] 14/8/2009 09:12

After Horse19 posted, I found it here:



but it is not easy to find. It would be helpful if DGRE posted this information to their website.

[grollfam] 13/8/2009 22:18

Horse19 -Where did you pick up this infoabout Dividend??? Web site please.....

[kenny] 13/8/2009 12:18

Excellent news; keep those dividends coming!!

[horse19] 13/8/2009 10:26

RNS Number : 8061W
Delek Global Real Estate PLC
04 August 2009






Not for release, publication or distribution in whole or in part in, into or from any jurisdiction (including the United States) where to do so would constitute a violation of the relevant laws or regulations of such jurisdiction.




FOR IMMEDIATE RELEASE




4th August 2009







Delek Global Real Estate plc

('DGRE' or the 'Company')




Proposed Interim Dividend and Appointment of Book-runner







The board of DGRE announces that it resolved in its meeting held on 31st July 2009 to declare an interim dividend of 3.25 pence per DGRE share. The dividend is payable to shareholders on the register at 4th August 2009, and is payable on 18th August 2009.




The board of the Company also resolved at the above mentioned meeting that it will appoint a book-runner in order to facilitate the trading of shares of the Company. Further details of such appointment will follow shortly.

[kenny] 12/8/2009 10:10

News below which confirms, to me at least, that Delek Real Estate needs to continue to receive dividends from DGRE:

Phoenix, a Delek Group company, will be refinancing loans extended to Delek Real Estate, another Delek Group company. The Phoenix audit committee and board approved changes in the terms of outstanding loans totaling NIS 218 million. Delek Real Estate gets six months' grace (at most) to repay NIS 40 million in principal that had been due this month. It has until 2014 to repay NIS 40 million more of that particular loan. In exchange for its largesse, Phoenix is upping the interest rate from 6.5% to 9%, and Delek Real Estate is also giving Phoenix attachments to its 50% stake in Vitnia, a real estate company. (Michael Rochvarger)