Shareholders of Delek Global Real Estate have been told that the AIM-listed developer will be taken private by its parent company, Delek Belron International.
The Israeli developer is already 85% owned by Delek Belron International, which has made an offer to buy the remaining 15% of shares for 50p a share – but regardless of whether the remaining shareholders accepted the offer, it will be delisted.
It said: ‘As a shareholder owning more that 75% of the voting rights, of the company, Delek Belron International has significant power and has informed the company that the board of Delek Belron International has resolved to cancel the admission of shares to trading on AIM irrespective of whether the scheme becomes effective.’
The developer also announced that it would not be paying a final dividend as a result of pressure from Delek Belron International.
It said that the offer price of 50p a share valued the company at £132m – a premium of 86.9% to the average closing price of 26p a share in the three months to 29 January, the day before the preliminary offer was made.
It also said that the offer represented a discount of 73.4% to net asset value at 31 December of 188p a share.
Though it said that it was ‘not appropriate’ to provide a definitive recommendation for shareholders, it also said that it was ‘worthy of consideration’ because it provided ‘an opportunity for shareholders to realise a cash sum for their holding now, which may not otherwise be available’.