Delek Group Prepares Split Up

Delek Group is examining the possibility of a strategic split in the company’s holdings.

‘The outline of such a split contemplates a concentration of the company's activity in the energy sector and oil & gas sector under a new company to be incorporated outside of Israel,’ reads a note released on Tuesday. 

Delek Group said it could transfer to the new company its holdings in Delek Energy Systems, Delek Drilling, Avner Oil Exploration, Cohen Development & Industrial Buildings and Navitas Petroleum.

The process of the split will enable the two companies to act as independents, ‘each focusing on its own business.’ 

Management will take the final decision as the Board of Directors already gave its green light.

Delek and subsidiary Avner Oil exploration hold a 30% stake in a gas field off Cyprus’ southern coast that is estimated to contain 5-8 trillion cubic feet of gas.