Delek US Holdings, Inc. announced that it has completed the acquisition of approximately 33.7 million shares, or approximately 48% of the outstanding shares, of Alon USA Energy, Inc. common stock from Alon Israel Oil Company, Ltd.
Uzi Yemin, Chairman, President and Chief Executive Officer of Delek US stated: “We are pleased to have completed this transaction quickly and would like to thank the management teams of both Alon Israel and Alon USA for their support during this process. In addition, through the backing of our lenders, we were able to finance this transaction in a timely manner. This acquisition is an exciting strategic step for us as it broadens our asset diversity and we look forward to working with Alon USA’s Board of Directors and management team in the future.”
Five seats on the 11 member Alon USA Board of Directors previously held by Alon Israel representatives have been filled by representatives from Delek US. This includes Delek US Chairman, President and Chief Executive Officer Uzi Yemin who has been named as the chairman of the Alon USA board.
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 stockholder agreement allows Delek US to acquire up to 49.99% of the outstanding shares of Alon USA at its discretion, with additional ownership above this threshold subject to the approval of the independent members of Alon USA’s board of directors. The stockholder agreement will expire on 14 May 2016, and Delek US will then have no further restrictions under this agreement related to increasing ownership in Alon USA.
Adapted from press release by Rosalie Starling
Read the article online at: https://www.hydrocarbonengineering.com/refining/15052015/delek-us-completes-acquisition-of-interest-in-alon-usa-777/