OREANDA-NEWS. July 04, 2016. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) hereby announces that on June 30, 2016, it signed a non-binding memorandum of understanding with Fujian Yango Group Co., Ltd., a significant holding company that is incorporated and active in China ("the Buyer"), which includes the principles for concluding a binding agreement for the sale of all of the holdings in Phoenix Holdings Ltd. (52.3% of Phoenix share capital) ("Memorandum of Understanding," "Sold Shares" and "the Phoenix," respectively).

Pursuant to the Memorandum of Understanding, the total consideration for the Sold Shares will be an amount that is no lower than NIS 1.800 billion, with interest at an agreed rate that will be added to the consideration from September 1, 2016 through the closing date of the transaction. The consideration will be paid in cash on the date of closing and is expected to amount to no less than NIS 1.85 billion.

The transaction is subject to due diligence and execution of a binding agreement during the agreed and defined exclusivity period. The binding agreement will be subject to receipt of all of the regulatory approvals required by law.

This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on July 3, 2016.

About The Delek Group

The Delek Group, Israel's dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean's Levant Basin into one of the energy industry's most promising emerging regions. Having discovered Tamar and Leviathan, two of the world's largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets with total gross natural gas resources discovered since 2009 of approximately 40 TCF.

In addition, Delek Group has a number of assets in downstream energy, water desalination, and in the finance sector.