Delek Glbl Share Discussion Threads

[kenny] 25/9/2008 23:14

I received a speedy acknowledgement to my very strongly worded email to management.

The acknowledgement confirms that the Board of DGRE has not yet decided whether to grant the request for a loan. Also, my comments have been forwarded to the CEO of DGRE. I remain impressed that the whole group is quite open and honest albeit I think they totally under-estimated the negative effect of their proposal on DGRE and the merciless selling of DGRE's shares by some holders.

I am not naive enough to believe that my comments will have any great effect but hopefully Panmure Gordon, their brokers, are also advising them that DGRE cannot make the loan to solve an associated company's cashflow problems without losing a lot of the market's confidence - that DGRE shareholder's rights are being trampled all over.

Bottom line, hopefully, Delek Group and Delek Real Estate are re-examining their options and seeking alternative methods of raising the shortfall in re-financing. Shares of both shot up today in Israel so maybe something is going on in the background. However, I do caution that it is not unusual for shares on the TA exchange to move by 5% or more in a single day and today's gains in both, while spectacular at 13.85% and 15.81%, represent only what they have lost in the recent past.

[lewseyfarm] 25/9/2008 13:27

thanks kenny very interesting,i have added also ,good luck all

[flying pig] 25/9/2008 07:03

Kenny - thanks for your efforts. This appears an outstanding opportunity for the brave. I intend to add to my holding. Indeed I now have.

[kenny] 25/9/2008 00:10

Nickcduk - I agree entirely with your comments and have sent emails to management as well as Panmure Gordon.

We shall have to see what transpires but I am reassured that NAV for DGRE is substantial and, important to my investment decision, dividends look safe.

Ultimatly, if everything else fails I think Mr Yitzhak Tshuva (net worth reported as $4bn) who owns 60% of Delek Group will step in and support the other group companies by deploying some of his personal wealth. A recent newspaper report states he is selling 15% of Elad Group's interests in Canada for $440. Just yesterday, he bought NIS320m (about £50m) of bonds in the market in one of his other private companies called April Ltd.

[nickcduk] 24/9/2008 20:08

Im not sure its the amount of the loan that has spooked the markets. Its just the incestuous nature in which all the companies operate and how the majority shareholder can do pretty much what they want with DGRE. Using DGRE to prop up another part of their business suggests the company is being run for its parent company rather than the benefit of all shareholders.

[kenny] 24/9/2008 19:08

..... further, just to put this in context - the loan being considered represents about 4p per share whereas the drop in share price has been about 25p over the last 3 weeks; bonkers! However, in these markets it seems to be a case of sell first, ask questions later.

[kenny] 24/9/2008 16:29

I can only assume that Lehmans held some - or someone else who is trying to sell a large number.

However, see now announcement made re; possible loan to fellow subsidiary.

Market over reacting if you ask me - bought some more at 71.25p today.

[lewseyfarm] 24/9/2008 15:23

any insight as to why the drop kenny

[kenny] 11/9/2008 15:49

The press release below from Delek Group looking interesting. Delek Real Estate owns 85% of DGRE and this action clearly indicates that Delek Group intend to support DGRE. Next stage, buy in DGRE maybe? If so, will any offer for DGRE be priced at, say, 160p or more; possibly at the 200p it was floated at?

=========
Delek Group Tender Offer for 10% of Delek Real Estate

Tel Aviv, September 7, 2008. Delek Group (TASE: DLEKG) (hereinafter: the "Offeror") announced today September 7th 2008, that the Offeror submitted to the Israel Securities Authority, the Tel Aviv Stock Exchange and to Delek Real Estate Ltd. (hereinafter: the "Company"), the schedule of a regular tender offer (hereinafter: the "Schedule") under which the Offeror is rendering an offer to all regular shareholders, without par value, of the Company, save for the Offeror itself (hereinafter: the "Offerees"), with an offer to purchase from them up to 12,889,431 of their shares held (and which represent 10% of the Company's issued and outstanding share capital), at a price of NIS 10.18 per share, based on the terms of the Schedule (hereinafter: "Tender Offer").

Based on the terms of the Schedule, the Offerees are eligible to submit Tender Offer acceptance notices starting from the date of the Schedule, September 7th 2008, and until September 24th 2008.
=========

[kenmitch] 03/9/2008 20:06

Well worth watching imo Lord Gnome.

I didn't know until you posted on another thread that all shares went ex divi on Wednesdays.

[lord gnome] 03/9/2008 13:23

Price moved shortly after I posted kenmitch - perhaps the MMs had forgotten about the ex-div ;-))
These are now on my watchlist.

[kenmitch] 03/9/2008 12:03

Yes. They've gone ex divi today and the share price has fallen by more than that dividend. They look a stonking buy at under 90p.

[lord gnome] 03/9/2008 08:29

Did these go ex-div this morning? Price hasn't budged.

[kenny] 02/9/2008 09:57

Investors Chronicle repeats it's BUY recommendation.

[topvest] 28/8/2008 12:17

Good results and nice dividend increase at the interim stage. The results are a little opaque as the properties do not appear to have been revalued at the interim stage, although this is not explicitly stated anywhere in the interims. I supsect that NAV would be somewhat lower if a valuation had been completed. Nevertheless, happy to hold. Can see this getting taken private.

[kenmitch] 27/8/2008 19:40

Excellent results today and a 5.5p dividend payable next month.

Debt a bit of an issue?

Cash and cash equivalents of £73 million at the end of June.

I like the diversity of their investment area - UK, Germany, Switzerland, Finland, Sweden and Canada, and the quality and range of their tenants, including the UK Government.

Shares up a touch at 89p but still way below NAV at well over £2.

There must be a catch somewhere - or isn't there?

[flying pig] 26/8/2008 09:31

Confirmation of settlement as expected.

[flying pig] 09/8/2008 08:04

Chart looking rather more healthy - if charting works.

[kenny] 30/7/2008 08:37

Buyout of DGRE in coming months? See excerpt from Israeli newspaper below:

Here at home, Delek Real Estate confirmed reports that Even Zinger Giza is carrying out an evaluation of the company, but the job isn't done yet. Insofar as is known, Giza thinks Delek Real Estate to be worth between NIS 3.5 billion to NIS 3.75 billion. The figures are not final but they're certainly about three times its market cap in Tel Aviv, which might explain why the whisper sent the company's stock rising 15% on Sunday. Eventually, though, even this company succumbed to the trend and lost 5.7% yesterday.
===================================

Delek Real Estate owns about 80% of DGRE and Delek Group owns a further 5%. I believe that any buyer of Delek Real Estate will wish to own 100% of DGRE so will likely buy in the outstanding 15%.

If so, the big question is what will be the bid price for DGRE. Current NAV is probably still above 200p and DGRE was flotated at 200p in March 2007. So, for example, a 20% discount to NAV would suggest a take out price of 160p or slightly more. They may even be willing to pay full NAV to secure the outstanding 15%.

Interesting times!!

[flying pig] 10/7/2008 07:10

Kenny

I agree with you on DGRE.

KEIF also worth a look as holding property in Europe and sensible funding in place.

[kenny] 09/7/2008 15:28

nickcduk - as you are aware, DGRE is trading on a massive discount to NAV; as are all other property investment companies. The rent on the NCP leases rises by 2.5% per annum so one imagines this is somewhat supportive of both value and the company's ability to continue paying massive dividends.

Short term, some other property investment companies are higher yeilding but I think a number will have to cut their dividends - as MAY have done and IFD has recently announced. Indeed, IFD has halved their dividend so they go to the bottom of the class. I am guessing that IPI will follow. A very large number of the remaining high yeilders are paying their dividends out of investor's own capital. In other words the high yeild is an illusion.

I am going to stick with DGRE and plan to re-invest dividends as they come in - in this respect this company is a good long term investment - also an ideal SIPP investment.

[nickcduk] 08/7/2008 22:38

I think DGRE's attraction versus its peers has diminished greatly from a couple of months ago. There are other property plays with lower gearing which are offering higher yields than DGRE is. I think DGRE is also vulnerable to large write downs from its NCP assets. The key behind the rise in values at NCP was due to the increase in inner city living and new build flat developments. Land values have collapsed as developers put a freeze on acquiring new plots so that will be reflected in NCP valuation. Still worth a punt but better opportunities emerging elsewhere.