Gil Agmon takes advantage of Delek Automotive stock decline for massive purchase
CEO Gil Agmon purchased company shares for approximately 148 million shekels, increasing his stake from 49% to 56%. The stock has fallen by 67% since its last peak.
Delek Automotive reported to the stock exchange on Wednesday that CEO Gil Agmon purchased 7.6% of its shares for approximately 148 million shekels, increasing his stake in the company from 49% to 56%. The transaction was executed at a price of 20 shekels per share, representing a 25% upside relative to the current price. The stock rose by over 10% during trading in Tel Aviv today.
Agmon's purchase follows a 67% decline in Delek Automotive's stock from its last peak, amid continued weakness in its business operations. At the beginning of 2024, Agmon conducted a tender offer, purchasing a 6% stake in the company for approximately 145 million shekels at 23 shekels per share.
Agmon's previous move also followed a significant decline in the stock price, triggered by the acquisition of Infinia (Nir Hadera) by the subsidiary Veridis, which weighed heavily on the company's performance. That acquisition, carried out a year and a half earlier, led to a drop of over 50% in the value of Delek Automotive.
Delek reports loss in the first half of the year
During the first half of 2025, Delek Automotive sold 5,186 new vehicles, a 42% drop compared to the same period last year. Mazda sales fell by 68% to approximately 1,790 vehicles, while Ford sales saw a more modest decline of 8.5% with 555 vehicles sold. In the premium market, Delek Automotive maintained stability, selling approximately 1,930 BMW luxury vehicles, consistent with the previous year.
Delek Automotive, which also operates in waste management and cardboard sales through its subsidiary Veridis, ended the first half with revenue of approximately 3.26 billion shekels, a 1% increase year-on-year. In the second quarter, the company reported revenue growth of 17%, reaching approximately 1.5 billion shekels, driven by improvements in waste operations and the merger of the leasing company Eurodrive.
However, Delek Automotive reported a net loss of approximately 12.6 million shekels for the half-year, compared to a profit of 92 million shekels in the previous year. The quarterly loss was significantly higher, standing at approximately 88 million shekels. This loss is attributed to a significant write-down of approximately 161 million shekels on the company's investment in the chip manufacturer Hailo. While Hailo reached a peak valuation of over a billion dollars, an agreement was signed last month to sell the company for a few tens of millions of dollars.
