Delek Signed of Agreement for Sale of Power Station
OREANDA-NEWS. Delek Group hereby announces that further to the Immediate Report dated July 19, 2016, the Company hereby announces that on August 16, 2016, a wholly owned subsidiary signed an agreement with a partnership to be established by a group of financial and private investors for the sale of the Company's holdings (100%) in IPP Delek Ashkelon Ltd. ("Delek Ashkelon"). Delek Ashkelon owns a power station with the capacity of producing 87 MW of electricity, which is located adjacent to the desalination plant in Ashkelon.
The proceeds for the sale of the foregoing shares will be paid in cash at closing of the transaction and is set at NIS 200 million, which will cover the proceeds for the shares sold and repayment of the shareholders' loans.
Under the agreement, the Buyer has undertaken to release or indemnify the Seller (including affiliates of the Seller and the Company) from any guarantees and undertakings relating to the operations of Delek Ashkelon and/or the power station. The agreement also includes arrangements for payment of additional proceeds, subject to the conclusion of various third party proceedings, the conclusion of which is uncertain.
The agreement includes several preconditions, generally accepted for this type of transaction, and the closing date will be soon following compliance with all these preconditions and no later than February 25, 2017 (unless postponed by consent of the parties).
It is hereby clarified that there is no certainty that the transaction will materialize, and the Company will issue another immediate report once the transaction is concluded, if it will be concluded.