Delek Group to sell 70% of Delek Israel unit to Lahav, BGM

Delek Group DLEKG.TA has agreed to sell 70% of its Delek Israel subsidiary to Lahav LR Real Estate and BGM Ltd for 525 million shekels ($155.5 million), the companies said.

The buyers also received an option to buy up to an additional 3.5% of Delek Israel no later than 135 days after completion of the deal. Delek Israel operates a chain of petrol stations and convenience stores throughout Israel.

Delek Group, which has stakes in Israel’s two largest offshore natural gas fields, posted a loss of 326 million shekels in the second quarter.

One of Israel’s largest conglomerates, Delek Group has been hard hit by the coronavirus outbreak and drop in global oil prices and has been selling assets to raise funds to pay its lenders and bondholders.