BRENTWOOD, Tenn., March 7, 2022 /PRNewswire/ -- Delek US
Holdings, Inc. (NYSE: DK) ("Delek US" or the "Company") announced
today it entered into a stock purchase and cooperation agreement
(the "Agreement") with Carl C. Icahn and certain of his
affiliates ("the Icahn Group"). The Agreement includes the
purchase of $64 million of the
Company's common stock beneficially owned by the Icahn Group, at a
purchase price of $18.30 per share, which is the closing
price of the Company's common shares on March 4, 2022, the
last trading day prior to the execution of the
Agreement. Under the Agreement, the Icahn Group will, among
other things, (i) withdraw its nomination of directors and (ii)
agree to a standstill restriction through the completion of the
Company's 2023 annual meeting of stockholders, including refraining
from acquiring additional shares of the Company's common stock.
Delek US will utilize cash on hand to fund the share
repurchase.
The share repurchase is expected to close no later
than March 11, 2022, subject to customary closing conditions,
after which the Icahn Group is expected to own approximately 3.48
million common shares of Delek US, which represents
approximately 4.93% of the company's outstanding shares.
Uzi Yemin, the Company's
Chairman, CEO and President said, "The combination of a strong cash
balance and a robust refining margin environment provide us with
flexibility to effectuate this transaction. This share repurchase
reflects our confidence in the underlying business and reduces our
shares outstanding by approximately 4.7%. Moving forward, we will
continue to focus on running our system safely and reliably in an
effort to capture the full benefits that this strong macro
environment offers."
The full Agreement will be filed on a Form 8-K with the United
States Securities and Exchange Commission.(the "SEC").
About Delek US Holdings, Inc.
Delek US Holdings, Inc. is a diversified downstream energy
company with assets in petroleum refining, logistics, asphalt,
renewable fuels and convenience store retailing. The refining
assets consist of refineries operated in Tyler and Big
Spring, Texas, El Dorado,
Arkansas and Krotz Springs,
Louisiana with a combined nameplate crude throughput
capacity of 302,000 barrels per day.
The logistics operations consist of Delek Logistics. Delek US
and its affiliates also own the general partner and an approximate
80 percent limited partner interest in Delek Logistics. Delek
Logistics is a growth-oriented master limited partnership focused
on owning and operating midstream energy infrastructure assets.
The convenience store retail business operates approximately 250
convenience stores in central and west Texas and New
Mexico.
Safe Harbor Provisions Regarding Forward-Looking
Statements
This press release contains forward-looking statements that are
based upon current expectations and involve a number of risks and
uncertainties. Statements concerning future unit sales and other
statements current estimates, expectations and projections about
future results, performance, prospects, opportunities, plans,
actions and events and other statements, concerns, or matters that
are not historical facts are "forward-looking statements," as that
term is defined under the federal securities laws. Investors are
cautioned that the following important factors, among others, may
affect these forward-looking statements: risks and uncertainties
with respect to the quantities and costs of crude oil we are able
to obtain and the price of the refined petroleum products we
ultimately sell; risks related to exposure to Permian Basin crude
oil, such as supply, pricing, gathering, production and
transportation capacity; risks and uncertainties related to the
effects of the COVID-19 pandemic; gains and losses from derivative
instruments; management's ability to execute its strategy of
growth, including risks associated with acquisitions and
dispositions; our competitive position and the effects of
competition; the projected growth of the industries in which we
operate; general economic and business conditions affecting the
geographic areas in which we operate; and other risks described in
Delek US"s and Delek Logistics' filings with the SEC, including
risks disclosed in their respective Annual Reports on Form 10-K,
Quarterly Reports on Form 10-Q and other filings and reports with
the SEC.
Forward-looking statements should not be read as a guarantee of
future performance or results and will not be accurate indications
of the times at, or by, which such performance or results will be
achieved. Forward-looking information is based on information
available at the time and/or management's good faith belief with
respect to future events, and is subject to risks and uncertainties
that could cause actual performance or results to differ materially
from those expressed in the statements. Neither Delek US nor Delek
Logistics undertakes any obligation to update or revise any such
forward-looking statements to reflect events or circumstances that
occur, or which they become aware of, after the date hereof, except
as required by applicable law or regulation.
Information about Delek US Holdings, Inc. can be found on its
website (www.delekus.com), investor relations webpage
(ir.delekus.com), news webpage (www.delekus.com/news) and its
Twitter account (@DelekUSHoldings).
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SOURCE Delek US Holdings, Inc.