Delek Glbl Share Discussion Threads

[grollfam] 29/8/2010 11:08

KENNY

Good thing Roadchef is owned by Delek Real Estate (TASE: DLKR) and Delek Petroleum (a fully owned subsidiary of Delek Group) (TASE: DLEKG). ...& NOT DGRE........




Former Delek Real Estate CEO accused of fraud
Securities Authority: Ilik Rozansky inflated valuations of UK assets.
Globes' correspondent 29 Aug 10 12:42


The Israel Securities Authority today announced that it suspects former Delek Real Estate Ltd. (TASE: DLKR) CEO Ilik Rozanski of filing misleading financial reports and a prospectus. The Securities Authority handed the investigative material to the prosecutor.
"The investigative findings found that Rozanski acted to change the accounting classification of Roadchef in the books of Delek Real Estate. His objective was to prevent the recording of NIS 125 million of depreciation in the company's annual financial report," stated the Securities Authority.

British motorway services company Roadchef is a subsidiary of Delek Real Estate, controlled by Yitzhak Tshuva.

[grollfam] 20/8/2010 06:34

Tshuva's Phoenix balks at investing in El-Ad Canada IPO
Phoenix Insurance Company, controlled by Yitzhak Tshuva and CEO Eyal Lapidot, has proved a stumbling block in the initial public offering of Tshuva's El-Ad Group (Canada ).
By Sharon Shpurer and Michael Rochvarger
Phoenix Insurance Company, controlled by Yitzhak Tshuva and CEO Eyal Lapidot, has proved a stumbling block in the initial public offering of Tshuva's El-Ad Group (Canada ).

Sources close to the matter say the underwriters had been told Phoenix would invest tens of millions of shekels in the offering's institutional phase, but this did not happen.

Phoenix's three-member investment committee objected. The three men are external directors Reuven Adler and Ziv Gil, and board member Zeev Milbauer, a former chief executive of IBI Investment House. Apparently it was Adler who led resistance to the investment.

Alongside his role in Phoenix's investment committee, Adler is an external director at Bank Leumi and a consultant to Dexia Israel Bank. He is also a former deputy CEO of Mizrahi-Tefahot bank.

Phoenix Insurance declined to comment.

The institutional phase of the offering was completed in dribs and drabs after a campaign to persuade institutional investors to take part. El-Ad Canada raised around NIS 180 million in that phase.

In a few days the public phase will take place, at which point the company will try to complete its raising of NIS 275 million - the minimum required to start trading on the stock exchange. The underwriters have agreed to step in if necessary.

Tshuva, however, wants to take in enough money in the public phase so as not to have to rely on the underwriters.

"It's very important to us not to hurt the investors and leave them feeling uncomfortable, so we decided not to get to a point where the underwriters get stuck with the goods and distribute them at prices that are liable to hurt the investors," said an executive at El-Ad Group. "We believe that the public will take up the share offering and profit from it in the future."

Yesterday it was announced that Clal Insurance, part of Nochi Dankner's IDB Group, is buying stock worth between NIS 20 million and NIS 40 million in the offering.

Tshuva's original plan was to float at a valuation of C$600 million, (1.5 times its equity ). But institutional investors balked, so Tshuva was obliged to offer a discount of 10%. Even then it was not certain that the offering would be completed, so the end of the institutional phase was postponed until today.

The 10% drop in price put the stock at NIS 20, a company valuation of around $540 million. The company wants to raise the NIS 275 million to develop real-estate projects and pay off debts.

The offer is being conducted by a consortium of underwriters including Poalim Capital Markets, Clal Finance, Leader Capital Markets, Excellence Nessuah, Leumi Partners and Meitav Underwriting.

The underwriters conducted meetings with institutional investors until late yesterday evening to persuade them to take up the offer, which includes compensation to investors if the company drops in value to $400 million within three years. There is also a compensation mechanism for El-Ad Group if the value of El-Ad Group (Canada ) rises above $700 million.

For Tshuva this share offering follows on another three years ago, the last to be carried out in Tel Aviv by one of his companies, Delek Israel Fuel. Then, too, the flotation followed a valuation slash of tens of percentage points and there were sharp market fluctuations

[grollfam] 18/8/2010 17:54

Phoenix Assurance shuns Elad Canada offering
Yitzhak Tshuva's real estate company secured NIS 180 in the institutional tender. The public offering will be held within two weeks.
Ron Steinblatt 18 Aug 10 19:08


Elad Canada, a subsidiary of the El-Ad Group, controlled by Yitzhak Tshuva, yesterday secured only NIS 180 million in its institutional tender, in which it sought to raise NIS 220 million.
The institutional phase went ahead even though negotiations with the underwriters to purchase an additional NIS 50 million were not successful. The public tender for the balance of the offering, up to a total offering amount of NIS 272 million, is due to take place within two weeks.

It is notable that companies belonging to Delek Group Ltd. (TASE: DLEKG), which Tshuva controls - Excellence Investment House and its controlling shareholder Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5), which was supposed to participate in the offering - did not contribute towards making it a success. Excellence injected orders amounting to just a few million shekels, while Phoenix refrained altogether from participating in the offering despite the recommendation of its investment arm to purchase tens of millions of shekels worth of shares, after external directors on the participating policy investment committee - Reuven Adler, Zeev Milbauer, and Ziv Gil - opposed investing in Elad Canada.

Tshuva had already been forced to postpone the offering by Elad Canada, which operates in incoming producing real estate in that country, because of disagreements concerning the value of the company, and earlier this month proposed a mechanism for compensating investors if the value should decline after the offering.

The institutional offering went ahead only after the stock price was cut 10% to NIS 19.8, a price that reflects a company value of 540 million Canadian dollars. The warrants issue price was also revised downwards.

"Investors have matured - nowadays they don't just hear 'Yitzhak Tshuva' and straightaway rush to buy," a capital market player who was involved in the offering said today. Raising NIS 92 million from the public will not be simple at this time, market sources said today, which threatens the entire process. Poalim IBI Management, Leader Underwriters Ltd., Clal Finance Underwriters Ltd., Excellence Nessuah Underwriting Ltd., Meitav Underwriting Ltd., and Leumi Partners Ltd. are managing the transaction.

Elad Canada Inc. was founded in December 2009 as a subsidiary of the El-Ad Group. The new legal vehicle is due to buy a series of properties from Elad Canada. 43% of Elad Canada's revenue derives from rental apartments, 39% from sheltered housing, and 18% commercial properties.

In the first quarter of 2010, the company had revenue $24 million Canadian dollars, similar to the corresponding period), and made a net profit of 276 thousand Canadian dollars, 71% less than in the corresponding period. Cash flow was a negative 11 million Canadian dollars, shareholders' equity was 417 million Canadian dollars, and liabilities amounted to 530 million Canadian dollars.

Published by Globes [online], Israel business news - www.globes-online.com - on August 18, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

[tiltonboy] 16/8/2010 11:37

Kenny,

Thanks. There has been a relentless fall, and it doesn't seem that long ago that we were down to an NAV of 150p, but it obviously was. As you say, only a 6p fall this time, but in a period when we might have hoped for some NAV appreciation.

I would still take 80p for my holding.

[kenny] 16/8/2010 11:28

Fall was 6p per share from 31.12.09 so not material. Most of the fall appers to be in financial instruments so, personally, I am fairly laid back about that as the fall should reverse over time until redemption.

[tiltonboy] 16/8/2010 11:07

Kenny,

Any indication on where the falls have occurred to see the NAV fall so much?

tiltonboy

[kenny] 16/8/2010 11:01

Accounts for the six months to 30th June now available in PDF format on request from the company.

NAV down to 128p. Some more director changes. Auditors changed. No further news on property sales. Cash up £10m to £41m but before recent dividend.

Hard to know when next dividend or quantum might be. At present I am guessing it could be 2.65p, as before, and in December but that is very much a guess.

[kenny] 09/8/2010 13:40

Looks like the institutions have asked for some "insurance" to subscribe in the new issue below - as they got their fingers burnt subscribing for DGRE shares at 200p:
========================================
El-Ad Canada nearing IPO in Tel Aviv

El-Ad Canada is almost ready to float its shares on the Tel Aviv Stock Exchange, after months of delays. The Canadian real estate arm of Yitzhak Tshuva's Delek Group has received positive indications from the Israel Securities Authority that it will approve its unique offering structure, which boils down to evaluating the company over several years. Shareholders will be compensated if the share price drops below a certain level during a certain period, and the company's controlling shareholder will get more shares if the company market cap rises above a certain level during a certain period. Sources close to Delek Group told TheMarker that Moshe Bareket, former head of the corporate department at the securities authority, helped obtain permission for the IPO to proceed. El-Ad Canada, however, said Bareket had nothing to do with the offering. (Michael Rochvarger )
======================================================

[kenny] 29/7/2010 14:28

I do not know if all DRE will be left with will be shares. I had the impression that DRE had loads more property; including RoadChef.

[grollfam] 27/7/2010 15:14

KENNY
IF THIS DEAL GOES THROUGH, ALL DRE LISTED IN TEL AVIV WILL HAVE ARE SHARES IN LISTED & UNLISTED COMPANIES.......


Tamir Fishman Real Estate seeks merger with Delek Real Estate unit
Tamir Fishman Real Estate will allot 75-80% of its shares to Delek Real Estate in exchange for all of Elad Israel.
25 July 10 17:51, Globes' correspondent
Tamir Fishman Real Estate Ltd. (TASE: TFRE), after losing 75% of its value in the three years since its IPO, is in talks to merge with Elad Israel Residences Ltd., a wholly subsidiary of Delek Real Estate Ltd. (TASE: DLKR), controlled by Yitzhak Tshuva, in a share-swap deal. Tamir Fishman Real Estate will allot 75-80% of its shares to Delek Real Estate in exchange for all of Elad Israel.
The final allotment of shares will depend on the company value assessments for Tamir Fishman Real Estate and Elad Israel, formerly Dankner Investments. If a deal is reached, it will put Dankner Investments back on the TASE, after Delek Real Estate acquired the company from the Dankner family in 2004 for $60 million, and subsequently delisted it.

On the basis of the proposed share swap and Tamir Fishman Real Estate shareholders' equity of €25 million (NIS 125 million), Delek Real Estate's holding in the company after the merger will be about NIS 400 million. Elad Israel, which handles Delek Real Estate's Israeli residential business, currently has six projects under construction in Petah Tikva, Ness Ziona, Azur, Givatayim and two projects in Netanya.

Delek Real Estate's share price rose 6.9% to NIS 1.58, giving a market cap of NIS 445 million, and Tamir Fishman Real Estate's share price rose 16.6% to NIS 2.85, giving a market cap of NIS 60 million.

Published by Globes [online], Israel business news - www.globes-online.com - on July 25, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

[kenny] 14/7/2010 07:58

Thanks. That article is interesting because it states the NCP car parks are up for sale (DGRE's main asset). DGRE's interest in the NCP car parks is valued at £566m at 31.12.09, so £959m for 100%.

If a sale goes ahead, let us hope they acheive a good price - near to recent valuation.

I have learnt that, as with all speculation relating to Delek, don't believe it until it happens because they put out many plans for transactions they are considering, 99% of which never occur.

I have doubts they will acheive a good price for the NCP car parks in today's market so the transaction may not happen.

[grollfam] 14/7/2010 07:47

MORE INFO ON HILTON HOTELS & NCP....



Published 01:38 14.07.10
Latest update 01:38 14.07.10
Who needs a bank when investors can finance the Tshuva group?
By Michael Rochvarger
Israel Phoenix Assurance and Delek Real Estate shareholders will be summoned to meetings on August 15 to vote on changes to the terms for loans that the companies have provided. The invitations to the meetings, along with the shelf prospectus that Phoenix filed at the end of May on a securities offering, provide details for the first time of the exposure that the two Delek Group financial institutions, Phoenix and its subsidiary, Excellence Investment, have to the bond and loan liabilities of other Delek Group companies. The Delek Group is controlled by Yitzhak Tshuva.

The credit transactions with Tshuva's group of firms, which has consisted of providing loans and buying bonds, involved between NIS 600 and NIS 700 million. Phoenix is also involved in NIS 250 million worth of other Delek Group deals, bringing the aggregate equity and debt involvement by Phoenix and Excellence in Tshuva's companies to about a billion shekels. Phoenix's total investment portfolio is worth about NIS 36 billion.

Phoenix's greatest exposure involves NIS 200 million from the El-Ad Group. The Phoenix prospectus reveals that as of the beginning of June, Phoenix provident and pension funds and profit-sharing policies held about NIS 157 million in bonds, as measured by nominal value, issued by Tshuva's privately held North American real estate firms, El-Ad Florida and the El-Ad Group.

In addition, in Phoenix's own proprietary investment portfolio, it has about NIS 40 million in El-Ad Canada bonds (by nominal value ), bringing its exposure from El-Ad Group bonds to about NIS 200 million. The principal on these non-negotiable bonds is due in 2021.

As measured by the scope of liabilities and credit owed Phoenix, Delek Real Estate is next on the list. The real estate firm has paid off NIS 250 million in Phoenix loans, leaving NIS 85 million outstanding. Phoenix also maintains funds with about NIS 56 million of nominal value in Delek Real Estate bonds, bringing Phoenix's exposure from Delek Real Estate debt instruments to about NIS 140 million.

Exposure from other Delek companies includes about NIS 50 million by nominal value in bonds issued by Delek Israel, Delek Petroleum, Delek Energy, Vitania real estate and the Delek Group itself.

Excellence also provides the group with financing and as of the beginning of June, the investment firm's mutual funds and exchange traded notes had a nominal NIS 27 million in Delek Real Estate bonds and its provident funds had about NIS 225 to NIS 250 million in bonds from Delek Israel, Delek Petroleum, Vitania and the Delek Group.

Phoenix did more than extend finance to Delek Real Estate. The two also got into a number of business ventures together between 2003 and 2007. Phoenix joined Igal Ahouvi, Delek Real Estate and others in a NIS 3.3 billion total investment for a 10% stake in 16 Hilton hotels in Britain in 2005. In 2009, Delek Real Estate wrote off its entire investment in the hotels, about 14.7 million pounds.

Of Phoenix's own 8.5 million pounds in the venture, it has already written off 7 million.

In 2003, Phoenix also joined Delek Real Estate and Ahouvi in a deal for full ownership of the Linchfield parking lot chain in the U.K. for about 610 million pounds, which was about NIS 4.3 billion at the time. Linchfield has about 130 parking facilities in Britain.

Delek Real Estate's stake in the transaction was 59%, while Phoenix had about 5% of the deal. Delek Real Estate is seriously looking for a buyer for the parking facilities, and as far as is known, Phoenix would also go along, in hopes of turning a profit.

In connection with changes in the loan terms to Delek Real Estate that are coming up for a vote next month, Phoenix would be given a right of first refusal to buy up to 20% of the shares of Vitania, at a value to be set by a third party, which would be credited to the loan balances, but at a value of not less than NIS 380 million for Vitania. As a result, Delek Real Estate's share of the deal would be NIS 76 million.

Sources close to the Delek Group said Monday that about 70% of the Tshuva group's bond portfolio was acquired before Tshuva assumed control, adding that Phoenix recently sold some of its Tshuva group bonds at a profit of tens of millions of shekels.

[grollfam] 08/7/2010 09:44

TSUVA,S NEW PROPERTY COMPANY LISTING

After delaying an initial public offering on the Tel Aviv Stock Exchange for El-Ad Canada in May, the group has filed a revised prospectus with the Israel Securities Authority. It intends to have another go early next month, issuing from 10%-15% of its shares according to a market value of $600 million to $700 million.

The El-Ad Group, whose CEO and president is Miki Naftali, finished the first quarter 2010 with $131 million in revenues, 16% over the comparable quarter of 2009. That did not, however, translate into an improvement to the bottom line, and the group ended the quarter with a $600,000 loss, compared to a $65.1 million profit for the first quarter of 2009.

As of the end of March El-Ad had cash, collateralized assets and liquid assets of about $224 million, around $50 million less than at the end of 2009. It is estimated that its payments of principal to bondholders this year will amount to $64 million.

[kenny] 05/7/2010 23:16

Well spotted - the Swiss mall sale should go some way towards the next dividend payment - net proceeds are about 2.45p per share. By that I mean the next dividend after the one due to be paid on the 15 July, which I am guessing was financed from the sale of Place Elgin in Canada.

Also encouraging to note that the 31 December 2009 valuations are not excessive compared to sale prices being acheived albeit on sales of "minor" assets.

[grollfam] 05/7/2010 19:13

Haaretz Mon, July 05, 2010



Delek Real Estate sells Swiss mall

Delek Global Real Estate, a subsidiary of Delek Real Estate, said one of its group companies has signed a binding agreement to sell its shares in Matran Shopping Center, a Swiss mall, to a third party. The DGRE subsidiary will be getting 56 million Swiss francs, or about NIS 201 million, for its shares in the mall. The mall's value on DGRE's books is 54 million Swiss francs. Closing is expected as soon as the paperwork is done. The group company still owes the banks about 45.2 million Swiss francs for the mall. The Delek Real Estate group has been selling assets in order to reduce its leverage. (TheMarker )

[kenny] 05/7/2010 00:02

I have not seen accounts but think they may only be in Israeli, so I would not understand anyway. Think they still have numerous assets to sell, so not yet near the bottom of the barrel.

[grollfam] 04/7/2010 17:44

Kenny
Do you know whats left in Delek Real Estate listed in Israel ??? Anybody seen any accounts ????

Insurer Phoenix granted option to Delek Real Estate unit
Delek Real Estate offered Phoenix the option on the Vitania shares in exchange for part of a loan balance.
Globes' correspondent 4 Jul 10 17:05


Delek Real Estate Ltd. (TASE: DLKR has given Israel Phoenix Assurance Ltd. (TASE: PHOE1;PHOE5) first refusal rights to 20% of subsidiary Vitania Ltd. (TASE:VTNA.B1). Yitzhak Tshuva controls Delek Real Estate directly and controls Phoenix through Delek Group Ltd. (TASE: DLEKG).
Like other Israeli insurance companies, Phoenix wants to invest in real estate, and sees Vitania as an opportunity.

Delek Real Estate paid Phoenix NIS 50 million out of an NIS 97 million loan payment due on July 1. The balance of the loans, including the unpaid balance of the present payment, is NIS 135 million. Delek Real Estate offered Phoenix the option on the Vitania shares in exchange for part of this balance. Delek Real Estate owns 48% of Vitania.

Delek Real Estate essentially gained time, as the loans that were due July 1st, and were not repaid, are now due in October. At the same time, Phoenix gained the option of buying a stake in the real estate firm.

Delek Real Estate is in talks to sell Vitania to a third party. Should the talks go through, Phoenix can buy its stake at the valuation used in the sale, or at a valuation of NIS 380 million - whichever is lower.

Should the sale not go through, Delek Real Estate will repay the balance of the loans due.

Published by Globes [online], Israel business news - www.globes-online.com - on July 4, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

[flying pig] 30/6/2010 17:23

ALL contributions are received with thanks. There might be some more to come later this year...

[tiltonboy] 30/6/2010 14:21

I'm happy with that.

[kenny] 30/6/2010 11:49

Dividend! A small one:

Delek Global Real
Proposed Interim Dividend
RNS Number : 5023O
Delek Global Real Estate PLC

FOR IMMEDIATE RELEASE
30th June 2010
Delek Global Real Estate plc ("DGRE" or the "Company")

Proposed Interim Dividend

The board of DGRE announces that it resolved in its meeting held on 29th June 2010 to declare an interim dividend of 2.65 pence per DGRE share. The dividend is payable to shareholders on the register at 30th June 2010, and is payable on 15th July 2010 (or as soon as practicable thereafter).

For more information, please contact:
Delek Global Real Estate plc
Jonathan Scott Warren
Tel: [phone]
Email: [e-mail]

[kenny] 17/6/2010 00:18

Reflecting on the recently announced suspected accounting offenses, I guess it explains a lot - such as the CEO who only hung around for a month.

Now that the news is out in public, I am coming to the view that DRE is unlikely to have a long term future as a public company. Before this, it was only surviving from one bond redemption to the next through property sales and funds injected by Mr Yitzhak Tshuva. This minght be the final nail in DRE's coffin.

If Yitzhak Tshuva digs deep and buys out the bondholders at near par and the ordinary shareholders - the latter not being a big cost - the only way he can defray his losses (and possibly have the funds to do the above) is to sell some of DGRE's main property assets. That involves overcoming the swap redemption problem in some manner.

I am guessing this bad publicity will rule out any re-float of DGRE because who is going to trust the property valuations, whichever firm of professional valuers are used.

Therefore, it may be that the chances of we minority shareholders receiving near full value are not, in fact, reduced by this bad publicity. Indeed, to the contrary, it may be that this bad publicity will, in due course, force Yitzhak Tshuva to bite the bullit and do what is inevitable; sooner than he would have otherwise contemplated.

It appears my logic for retaining DGRE post delisting is intact - even if not in the way I previously imagined might occur. In summary, future dividends may be thin but we may be nearer a winding up type transaction because of these developments.

Feeling a bit more positive! Lets hope my analisis is near the mark and that the new management are not as crooked as the previous CEO.

[tiltonboy] 16/6/2010 08:44

The DGRE website lists the buliding as primarily residential; it looks old and tatty from the picture:

[kenny] 16/6/2010 00:15

Some cash for DGRE, about £10m net:

Delek Real Estate sells Place Elgin

Delek Real Estate says that yesterday, following completion of due diligence, it is selling the Place Elgin building in Montreal, Canada for NIS 172 million (C$47.5 ). The building is owned by group company Delek Global Real Estate. The 14-story office building is booked at a value of C$45.8 million (as of the end of September 2009 ) and the company owes C$32 million on it. (Yael Halak )

[kenny] 15/6/2010 22:26

Yes, perhaps a little overly pessimistic. There are property buyers out there albeit swaps are proving costly to unwind.

[flying pig] 15/6/2010 20:44

Kenny

Perhaps over pessimistic - yes debt has to be refinanced but the lease length is better than many and banks are not wanting to put the "boot" in and force selling at silly prices.
However in the short term dividends may be thin - however much the parent wants the cash!