The Ticker: Delek Group Sells Faroe Stake for $99 Million

Businessman and CEO of the Delek Group Yitzhak Tshuva (right) and the chair of Singapore's stock exchage at a conference in Tel Aviv, 2017.
Businessman and CEO of the Delek Group Yitzhak Tshuva (right) and the chair of Singapore's stock exchage at a conference in Tel Aviv, 2017.Credit: Meged Gozani

Delek Group sells Faroe stake for $99 million 

The Delek Group said on Wednesday that it agreed to sell its entire 15.3% stake in Faroe Petroleum for 70.44 million pounds ($99.2 million) in cash. Delek said in a statement that the deal will close within two business days. It did not name the buyer, but it is known to be the Norwegian oil and gas company DNO. Delek will make a profit of 116 million shekels ($32.9 million) from the sale, of which 73 million shekels will be recorded in its 2018 financial results and the rest in 2017. The stake was sold at a 19% premium over the closing price of Faroe shares in London on Tuesday.  Faroe is an oil and gas exploration and production company operating in the North Sea. It is listed on the AIM market of the London Stock Exchange. The company has a portfolio of North Sea oil and gas licenses.  (Eran Azran and Reuters

Teva reportedly selling Kansas City-area unit to Florida company

Teva Pharmaceutical Industries will be selling one of its Kansas City-area “business segments,” the Kansas City Business Journal reported on Tuesday. Teva confirmed its plan to sell its Patient Services & Solutions business, the business publication said. The paper also cited an anonymous source as saying that the buyer of the 200-employee unit, which is run out of the Kansas City suburb of Overland Park, Kansas, is Florida-based AssistRx. An email from Teva stated that “after extensive evaluation, the transfer of ownership of our Patient Services & Solutions business has been initiated,” according to the Kansas City Business Journal. The Overland Park Teva unit reportedly provides support to patients using Teva products. (TheMarker)

Nice seeking to boost CEO’s pay by 20%, along with stock bonus

The software firm Nice is convening a general meeting of shareholders on May 14 to approve a 20% increase to $750,000 in the base annual salary received by Barak Eilam, the company’s CEO for the past four years. Nice’s share price has surged 118% since Eilam, who is now 40 years old, took the helm at the company. Nice’s compensation committee said the salary increase was appropriate in light of the compensation received by CEOs in comparable positions. His last raise was in 2016. The committee is also recommending that Eilam receive 57,000 restricted stock units with a fair market value of $5.27 million between 2018 and 2020. The vesting of at least 40% of the stock would be tied to the company’s financial performance. The committee said it believes Eilam has been the best candidate to lead Nice and also recommended providing him with a long-term incentive to remain, through additional restricted share units in the future. (Yoram Gabison

TASE wraps up holiday trading week with sharp declines, amid fears of global trade war

Shares fell sharply overall on a shortened Passover holiday trading day on Wednesday against the backdrop of concerns over a global trade war between the United States and China. The blue chip Tel Aviv 35 index and the broader Tel Aviv 125 index both dropped 2.3% – to 1,391.67 and 1,268.34 points respectively. The Banks 5 index dropped 3.1% to 1,877.13, led by Mizrahi Tefahot Bank, which closed down 3.7% at 62.98 shekels ($17.84) and Discount Bank, which fell 3.5% to 948.50 shekels. Trading volume on the short day was 1.16 billion shekels. Among the shares listed in the Tel Aviv 35 index, only one, Perrigo, registered a gain, closing at 284.80, up 0.2%. The losers included the Delek Group (see story above), which saw its shares drop 4.7% to 547.00 shekels; Cellcom Israel, which dropped 4.5% to 23.12; and Mazor Robotics, which closed down 4.2% at 100.30 shekels. Even among the broader Tel Aviv 125 index, only five stocks – Kenon Holdings, Mediterranean Towers, Perrigo, Kamada and Alrov Properties and Lodgings – chalked up gains on the day. The dollar surged to a 2018 high representative rate of 3.528 shekels. (TheMarker)

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