Bloomberg News

Delek Real Estate Soars Most in 6 Weeks on Bondholder Deal

September 26, 2011

(Updates with closing share price in second paragraph.)

Sept. 26 (Bloomberg) -- Delek Real Estate Ltd. surged the most in six weeks after controlling shareholder Isaac Tshuva reached a memorandum of understanding with holders of the company’s Series Dalet, Heh and Kaf-Heh bonds.

The shares of the property company soared 20 percent, the most since Aug. 14, to 0.165 shekel at the 4:30 p.m. close in Tel Aviv, paring the decline this year to 88 percent. The Ramat Gan, Israel-based company has a market value of 64 million shekels ($17 million).

Tshuva will make a one-time payment of 13 million shekels to Kaf-Heh bondholders in exchange for an agreement to delay principal payments until Jan. 31. He also will make an offer in July to buy all bonds outstanding.

--Editors: Susan Lerner, Claudia Maedler

To contact the reporter on this story: Shoshanna Solomon in Tel Aviv at ssolomon22@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net


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