Delek Recommends Shareholders Vote Yes for Its Director Nominees

BRENTWOOD, Tenn. — Delek US Holding Inc. is urging its shareholders to support its board of director's nominee card ahead of the company's annual stockholder meeting.

In a letter to shareholders, Delek recommended its shareholders vote in favor for "all of the company's highly qualified directors on the WHITE proxy card or voting instruction form." The company's 2021 Annual Meeting of Stockholders will take place at 1 p.m. on May 6.

The letter comes as Delek faces calls from CVR Energy Inc. to make several changes, including selling its convenience stores, and ceasing operations at the Krotz Springs and El Dorado refineries and convert them to terminals, renewable diesel production or for other purposes, as Convenience Store News previously reported.

CVR Energy is majority-owned subsidiary of Icahn Enterprises LP and holds approximately 15 percent of the outstanding common stock of Delek US.

In its push for changes, CVR Energy nominated three candidates to Delek's board. However, in its letter, Delek urged shareholders to discard any "gold" proxy materials they receive from CVR.

"Delek has a reputation for engaging with shareholders and analysts with respect to value-creating ideas and constructive proposals. While we welcome feedback from all shareholders, we respectfully note that CVR is not like any other Delek shareholder. We believe the actions demanded by CVR, a direct competitor of Delek, could benefit CVR's competing business rather than create value for Delek's shareholders," the company wrote in the letter.

"Delek's board carefully evaluated CVR's nominees and unanimously determined that adding them to the Delek board is not in the best interests of Delek shareholders," it added.

Brentwood-based Delek US Holdings is a diversified downstream energy company with assets in petroleum refining, logistics, asphalt, renewable fuels and convenience store retailing. The convenience store business operates approximately 253 convenience stores in central and west Texas and New Mexico. The refining assets consist of refineries operated in Tyler and Big Spring, Texas; El Dorado, Ark.; and Krotz Springs, La.

The logistics operations consist of Delek Logistics Partners. Delek US and its affiliates also own the general partner and an approximate 80 percent limited partner interest in Delek Logistics.