Delek US to buy remaining Alon USA shares for $464 million

Posted by on January 5, 2017 2:45 am
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Linus Unah – Fourth Estate Contributor

Brentwood, TN, United States (4E) – Delek US Holdings Inc. said Tuesday that it will buy all of the outstanding shares of Alon USA Energy Inc it does not already own in an all-stock transaction valued at $464 million.

Based on a closing price of $24.07 per share for Delek US common stock on Friday, the implied price for Alon common stock is $12.13 per share.

Brentwood, Tenn.-based Delek U.S. currently owns about 47 percent of the outstanding common stock of Alon USA.

The enterprise value to acquire the remaining 53 percent of Alon shares is about $675 million, Delek U.S. said.

This includes $152 million of net debt related to this transaction and $59 million of market value for the non-controlling interest in Alon USA Partners, LP.

The combination will create a Permian basin-focused company with refining, logistics, retail and marketing operations with a combined enterprise value of about $2.8 billion.

Its refining system will have access to about 207,000 barrels per day of Permian crude out of an approximately 300,000 barrel per day crude throughput system.

This transaction was approved by the board of directors of both companies, according to the news release posted on Delek’s website.

Delek US is a diversified downstream energy company with assets in petroleum refining and logistics.

Dallas-headquartered Alon USA Energy, Inc. is an independent refiner and marketer of petroleum products.

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