Delek US Announces Agreement to Acquire 48 Percent Ownership Interest in Alon USA
Apr. 14, 2015
Delek US Holdings Inc. (NYSE: DK) (“Delek US”) announced that it has entered into a definitive stock purchase agreement with Alon Israel Oil Company Ltd. (“Alon Israel”) to acquire approximately 33.7 million shares, or approximately 48 percent of the outstanding shares, of Alon USA Energy, Inc. (NYSE: ALJ) (“Alon USA”) common stock owned by Alon Israel.
Uzi Yemin, Chairman, President and Chief Executive Officer of Delek US stated, “We are excited about this opportunity to invest in Alon USA as it broadens our asset diversity while offering future growth opportunities. We would like to thank Alon Israel's management team for their support and efforts in this transaction, and we look forward to working with Alon USA’s Board of Directors and management team to create further value together in the future.”
Prior to commencing negotiations with Alon Israel, Delek US entered into a stockholder agreement with Alon USA. During the first year following the closing of this transaction, the agreement allows Delek US to acquire up to 49.99 percent of the outstanding shares of Alon USA at its discretion, with additional ownership above this threshold subject to approval of Alon USA’s board of directors. The stockholder agreement will expire on the first anniversary of the closing of this transaction, and Delek US will then have no further restrictions on ownership in Alon USA.
Delek US Holdings Inc. (NYSE: DK) (“Delek US”) announced that it has entered into a definitive stock purchase agreement with Alon Israel Oil Company Ltd. (“Alon Israel”) to acquire approximately 33.7 million shares, or approximately 48 percent of the outstanding shares, of Alon USA Energy, Inc. (NYSE: ALJ) (“Alon USA”) common stock owned by Alon Israel.
Uzi Yemin, Chairman, President and Chief Executive Officer of Delek US stated, “We are excited about this opportunity to invest in Alon USA as it broadens our asset diversity while offering future growth opportunities. We would like to thank Alon Israel's management team for their support and efforts in this transaction, and we look forward to working with Alon USA’s Board of Directors and management team to create further value together in the future.”
Prior to commencing negotiations with Alon Israel, Delek US entered into a stockholder agreement with Alon USA. During the first year following the closing of this transaction, the agreement allows Delek US to acquire up to 49.99 percent of the outstanding shares of Alon USA at its discretion, with additional ownership above this threshold subject to approval of Alon USA’s board of directors. The stockholder agreement will expire on the first anniversary of the closing of this transaction, and Delek US will then have no further restrictions on ownership in Alon USA.
Alon assets include:
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