Delek Automotive Systems Ltd. (TASE:DLEA) made a binding offer to acquire an unknown majority stake in VERIDIS ENVIRONMENT LTD from OCM Luxembourg EPF III Runway Bidco S.a.r.l and minority shareholders for ILS 1.1 billion on January 4, 2018. Delek Automotive Systems Ltd. (TASE:DLEA) agreed to acquire 70% stake in VERIDIS ENVIRONMENT LTD from OCM Luxembourg EPF III Runway Bidco S.a.r.l and minority shareholders for approximately ILS 990 million on March 3, 2018. On the transaction completion, Delek Automotive will pay the total consideration amount of ILS 990 million which shall be subject to certain adjustments.

Post completion, Delek Automotive's holding will be 70%, whereas Harel Insurance Group will hold 10% of the shareholder loans and Israe Infrastructure Fund III L.P will hold the balance of the issued paid-up capital 20% and the shareholder loans of VERIDIS. In a related deal, Harel Insurance Investments and Financial Services Ltd. is buying 10% of VERIDIS at the same company value as in Delek Automotive Systems' investment. The acquisition will be financed from internal sources of Delek Automotive Systems Ltd., as well as through bank and/or non-bank financing.

The deal is subject to approval for agreement between the parties in addition to the regulatory, third party, Government, The Israel Water Authority's water desalination administration, Public Utilities Authority (electricity) approvals and antitrust approvals. The transaction completion date will be after fulfillment of all the suspending conditions and no later than 180 days from the date of signature of the agreement. Clemence Colson, Marc Feider and Lee Noyek of Allen & Overy LLP acted as legal advisors to Delek Automotive Systems.