Israel’s Delek Group entered into a US$66 million deal with UK-based exploration and production firm Ithaca Energy to acquire nearly 20% of the company, making Delek the largest shareholder in Ithaca.
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Image of the Northern Producer. From Ithaca. |
Delek sees the new venture as a strategic investment in the international market and said the company intends to examine the possibility to increase its stake in Ithaca.
As for Ithaca, the North Sea-focused firm said that the investment reduces the company’s reserve based lending debt levels and provides additional flexibility to pursue value-accretive satellite opportunities in the Greater Stella Area, which is due for start-up in 2Q 2016.
As of today, Ithaca has a market value of $223 million, with shareholders' equity of $861 million. The company is a partner in 11 producing oil and gas fields, holding operatorship for three.
Delek is an Israeli listed conglomerate with natural gas exploration and production activities in the Levant basin in the Eastern Mediterranean.
"This is an important strategic step for Delek Group through expanding its operations and strengthening its position on the international market. We intend to continue to take advantage of opportunities in the markets and to examine further strategic investments in international companies in the energy field,” Asi Bartfeld, Delek Group CEO said.
"We are pleased to have secured Delek’s investment in the company at a significant premium to the prevailing share price at this time of uncertain oil prices. The investment provides a solid vote of confidence in the long term value of Ithaca by a successful oil and gas investor and provides additional flexibility to execute the financial and strategic priorities of the business," Les Thomas, Ithaca CEO said.
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