|Investment in Ratio Petroleum Energy - Limited Partnership|
Tel Aviv, January 25, 2017. Delek Group (TASE: DLEKG, US ADR: DGRLY) (“the Company”) announces that pursuant to its immediate report of November 28, 2016 regarding signing an investment agreement with Ratio Petroleum Energy - Limited Partnership ("the Partnership"), on January 5, 2017, the Partnership published a supplementary prospectus and on January 18, 2017 a supplementary announcement for this prospectus, for the issue and listing for trade of securities, including participating units in the Partnership, options (Series 1) and options (Series 2) (the prospectus and supplementary notice together: "the Prospectus").
On January 23, 2017, a tender offer took place under the Prospectus, pursuant to which the Partnership notified the Company that according to the results of the tender offer, securities were issued to the Company as follows:
20,069,392 registered participating units of NIS 1 par value each, which grant a participating interest in the rights of the limited partnership (17.5% of the total participating units of the Partnership issued and listed for trade under the Prospectus).
10,034,696 options (Series 1) exercisable for participating units, whereby each option (Series 1) is exercisable for one participating unit of NIS 1 par value against a cash payment at the time of the exercise of NIS 1.42 linked to the USD representative rate published on January 16, 2017, i.e. USD 1 = NIS 3.826.
10,034,696 options (Series 2) exercisable for participating units, whereby each option (Series 2) is exercisable for one participating unit of NIS 1 par value against a cash payment at the time of the exercise of NIS 1.64 linked to the USD representative rate published on January 16, 2017, i.e. USD 1 = NIS 3.826.
The total amount to be paid by the Company under the agreement is NIS 20.7 million (NIS 2,061.25 per bundle), a price that reflects a 15% discount off the minimum price at which the bundles were offered in the tender under the Prospectus.
Under the agreement between the Partnership and the Company, immediately following completion of the issue under the Prospectus, the Company will be entitled to appoint one director to serve on the Board of Directors of the General Partner in the Partnership, so long as it holds at least 10% of the Partnership's participating units. The Company is taking measures for such appointment.
Moreover, the foregoing securities allocated to the Company (including units derived from exercising the options (Series 1) and options (Series 2) will be locked up in accordance with the provisions of the Tel Aviv Stock Exchange.
This is a convenience translation of the original HEBREW immediate report issued to the Tel Aviv Stock Exchange by the Company on January 24, 2017.
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.
For more information on Delek Group please visit www.delek-group.com