Dalia Energies’ issue was denied; Considering investing in the Haifa Group – the capital market

Dalia Energies is currently postponing its IPO, which was supposed to take place this week at a value of about 4 billion, but it is possible that when it completes the move in the future, investors will receive exposure to another company – the Haifa Group (formerly Haifa Chemicals).

Haifa Chemicals produces ammonia and potassium nitrate, and its controlling shareholders, brothers Eddie and Jules Trump, will bring a group of investors to the Tene Fund to partner with the company (50.4%) for about $ 310 million. Along with the fund, the group also includes Leumi Partners and the old pension funds, and Batna is also in talks with Dalia Energies to join the group and invest $ 100 million in the Haifa group.

Haifa Group’s revenues in 2020 amounted to approximately $ 490 million and adjusted EBITDA of $ 20 million. These are sales at a volume about a third lower than before the closure of the ammonia facility in Haifa in 2017. To return to the previous level of sales, the Haifa Group is setting up a new ammonia plant in Mishor Rotem in the Negev, it was announced at the end of 2020.

Dalia Energies itself operates a private power plant that is powered by natural gas, with a capacity of about 900 megawatts, which makes it the largest private power plant in the country. The most prominent shareholders in the company are the kibbutz economies (about 41%), the 5741 fund (25%) and the Toyota importer in Israel, George Horesh (about 22%).

According to market sources, Dalia chose to suspend the offering at this stage due to indications from institutional sources that they will not participate in the offering if it is made at the said value (NIS 4 billion). In Dalia they preferred not to compromise on value and wait for another date.

Medal Energies delivered: “Dalia Energy’s shareholders believe in realizing the company’s strong improvement potential based on their in – depth knowledge of the company and its operations. Therefore, Dalia Energies has made a decision not to issue the company at a value lower than its real value, and to postpone the issue to another date.”