ROSH HAAYIN, Israel, April 9, 2012 /PRNewswire/ --
Alon Holdings Blue Square-Israel Ltd. (NYSE: BSI) (hereinafter: "Alon Holdings") announced today, further to its announcement dated September 1, 2011, that its majority owned subsidiary, Dor Alon Energy in Israel (1988) Ltd. ("Dor Alon"), had received from the Israeli Ministry of Energy and Water (formerly known as the Israeli Ministry of National Infrastructure) a document which has been sent to the top 5 large gas companies in Israel, with a reevaluation of the marketing margin in connection with the sale of 95 octane gasoline, the price of which is currently regulated (the " Draft Reevaluation"). The Draft Reevaluation relates to data received from Dor Alon with respect to years 2009 and 2010, and is in connection with legal proceedings carried out between the top 5 large gas companies and the Israeli Ministry of Energy and Water with respect to this matter, at the Israeli Supreme Court sitting as the High Court of Justice.
The Draft Reevaluation includes (among others) recommendations to reduce the marketing margin in the sale of self service 95 octane gasoline, from 58.9 Agurot per liter to approx. 57.5 Agurot per liter, as well as to reduce the full service charge from 18.1 Agurot per liter to approx. 11.1 Agurot per liter (said prices do not include VAT).
In a side letter to the Draft Reevaluation, it is clarified by the Prices Committee nominated by the Ministry of Energy and Water, that the Draft Reevaluation is deemed as a draft before hearing procedure, and that the gas companies are invited to forward their reference to the Draft Reevaluation in writing, by April 26, 2012. Under the discretion of the Prices Committee, an oral hearing will be carried out with companies that will send their response.If the recommendations of the Draft Reevaluation are adopted in whole or in part, they are expected to have an adverse effect on Dor Alon's results. At this stage, it is impossible to evaluate the final measure of damage, as long as a final decision has not been made.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts