Ithaca Energy shareholders have approved a proposed takeover bid from Delek Group that will expand the Israeli company's presence in the North Sea.
Image from Delek Grou
According to Ithaca, the offer of US$1.44 (CAD$1.95) per share has been accepted by its shareholders.
“Following the take up and payment for the tendered shares, DKL Investments Ltd., a wholly owned affiliate of Delek, will own and control 323,158,890 common shares, representing approximately 76% of the issued and outstanding shares of the company,” Ithaca said in a statement.
Ithaca said that the offer is being extended for a mandatory extension period until 3 May 2017 to provide shareholders who have not yet tendered their common shares to the offer an opportunity to do so.
Delek is prepared to pay $350 million (CAD$ 470.5 million) for 70.23% of Ithaca’s shares, not including the shares owned by the Delek or its affiliates.
The Israeli company will now hold 76% of Ithaca’s common shares.
“Having taken control of Ithaca, the Group will commence to consolidate its financial statements,” Delek said. “At this point, this profit is estimated at approximately NIS 150 million ($41 million).”
The takeover deal was first announced in early February, when Israel made a $524 million offer for Ithaca.