Delek Belron mulls offer for AIM-listed subsidiary

Delek Belron International, a wholly owned subsidiary of Israeli firm Delek Real Estate, has confirmed that it has made an initial non-binding approach for Delek Global Real Estate (DGRE).

Delek Belron and Delek Real Estate own 85% of the share capital of AIM-listed DGRE, which is the group's London-based arm.

Delek Real Estate said in a statement to the Tel Aviv Stock Exchange that the approach could lead to an offer being made to acquire the remaining 15% of DGRE the group does not already own. The initial non-binding approach to DGRE included an indicative offer price of 50 pence per share, some 25% more than DGRE's share price at the time of the offer. Delek Belron cautioned that the non-binding approach may or may not lead to an offer being made. If it does go ahead, DGRE will be delisted from AIM.

In early trading in London on Tuesday DGRE was up almost 11% at 48.75 pece.

The company's property portfolio of investment and co-investments in Western Europe and Canada consists of over 250 properties comprising 2.3 million m². The portfolio is valued at £4.5 bn (about EUR 5 bn), of which DGRE's share is £2.22 bn (EUR 2.47 bn). The majority of the properties are in the UK (196 assets) and Scandinavia (93).