Delek Group’s Decision to Increase its Financial Investment in Noble Energy Inc. Shares
Tel Aviv, Delek Group (TASE: DLEKG, hereinafter “the Company”) has announced yesterday, that in reference to the immediate report dated August 19th, 2009 (Reference No.: 2009-01-202077), the Company’s Board of Directors decided on July 8, 2010 to increase its investment in Noble Energy Inc (“Noble”) shares in an additional amount not to exceed 1% of Noble’s issued and outstanding shares capital in an investment which will not exceed $140 million.
It should be noted that until July 6th, 2010, the company purchased about 2% of Noble’s issued and outstanding share capital in an investment that amounted to about $230 million. The value of the shares according to their market value at this date is not materially different to the said investment value.
At the same time, an increased credit line was approved with a banking corporation under conditions similar to those outlined in August 2009 (“the original credit line”), whose main points are as follows:
Within the framework of the original agreement with the banking corporation, a credit line was offered to the Company as a Non Recourse type of loan in the amount of $120 million, which was completely used. On July 8th, 2010 an additional element to the agreement was signed with the banking corporation whereby an additional credit line (“additional credit line”) will be offered to the Company in the amount of up to $52 million. Withdrawing credit based on the original credit line as well as the additional credit line requires guarantees by the company as described below and is restricted for the first year from the date of the original credit provision. The credit that will be used is eligible for repayment as of May 2012. The interest rate for the credit amount that will be used is an annual interest rate at a Libor rate plus 3.43%. The company will provide to the bank as a guarantee the acquired Noble shares. It was agreed, if the ratio between the value of the credit balance and the value of the guarantee will increase to above 66% (subject to change under certain circumstances), the Company will be required to bring the ratio down to the agreed amount (about 55%). The Company shall be eligible to withdraw the distributed dividends in respect to the guaranteed shares, subject to the compliance with the above required debt ratio. Also, the credit agreement includes provisions in the case of immediate repayment due to unexpected events such as steep fluctuations in Noble’s trading volume, trading suspensions or steep falls to Noble’s share price.
This is a convenience translation of the HEBREW immediate report issued to the Tel Aviv Stock Exchange by Delek Group on July 8th, 2010.
About The Delek Group
Delek Group is the leading energy & infrastructure group based out of Israel with investments in upstream & downstream energy, water desalination and power plants globally. In addition, Delek is the number one importer & distributor of vehicles in Israel and owns insurance assets in Israel and the US. Earlier this year, Delek Group, through its subsidiaries, discovered significant quantities of high quality natural gas off the coast of Israel. Delek Group sales reached over 43 billion Israeli shekel in 2009.
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