Israeli energy conglomerate Delek Group has announced that it is buying control of citrus fruit supplier and real estate investor Mehadrin Ltd. in a deal worth NIS 249 million ($68 million). Delek has signed an agreement to acquire the 44.48% controlling stake Discount Investment Corp. owns in publicly traded Mehadrin for NIS 163.44 per share.
Delek CEO Idan Wallis: “We see Mehadrin as a company with significant betterment potential in light of the enormous scope of the land it possesses, which is under long-term lease agreements and ae located in demand areas in Israel. The transaction is done under optimal conditions for the Delek Group as it is financed from its available sources, without taking on debt or increasing leverage, and as such allows the group to take advantage of the business opportunity and benefit from the significant betterment potential that exists in our estimation.”
Mehadrin is one of Israel’s largest grower and exporter of citrus, avocado, dates and other fruits and vegetables, and owns large amounts of land and plantations across the country. The Be’erot Yitzhak-based company has privately owned and leased real estate assets with an estimated size of about 1,100 hectares, as well as logistics assets that include refrigerating houses, packaging houses and warehouses, in Israel and abroad.
Source: timesofisrael.com
