A little less than three years after acquiring control (70%) of the infrastructure company Veridis for NIS 890 million, Delek Automotive began to realize the huge profits generated by the investment. Veridis has completed an IPO and an offer to sell, in which the controlling shareholders – Delek Automotive and Israel Infrastructure Fund (IIF) – sold 20 million shares.
The company itself issued 5 million shares at a price of NIS 35.3 per share, which reflects a company value of NIS 3.75 billion post IPO. Veridis raised NIS 177 million.
Delek Automotive, which sold shares for NIS 549 million, thereby reduced its holding in the company to 50.4% on a fully diluted basis, and its shareholders’ equity will increase by NIS 330 million net. Delek Automotive acquired control of Veridis in July 2018 at a value of NIS 1.27 billion, and has since withdrawn its share of dividends in the total sum of NIS 230 million in the last two years.
IIF, managed by Yaron Kestenbaum, sold 4.5 million shares for NIS 157 million and will enjoy an even more impressive capital margin. IIF invested in the company at the end of 2017 at a company value of NIS 1.07 billion. The fund, which held 19.8% of the shares of Veridis, will be reduced to a holding of 14.4% on a fully-diluted basis.
Veridis operates mainly in the field of the environment, which includes two areas – household waste collection and energy. In the first area, the company operates transit, sorting and recycling stations, produces alternative combustible material from waste for Nesher, and owns landfills. In addition, it is engaged in the production of compost and landfilling of organic waste, as well as in the treatment and incineration of hazardous waste.
The second area, energy, includes the holding of 20% of the shares of OPC Rotem, which operates a conventional power plant in Mishor Rotem with 466 megawatts combined cycle technology. Veridis also owns 20% of AJS Rotem, which plans to build a 530-megawatt natural gas-fired power plant.
Another area of activity is water desalination, which includes the holding of 50% of the shares in the Ashkelon desalination plant until 2027. Veridis also fully owns the operator of the plant that supplies the country with 120 million cubic meters of desalinated water per year – i.e. 20% of all its desalinated water.