Delek Group is taking advantage of opportunities in international energy market
In the transaction Delek Group will receive a private allocation of approximately 20% of the company's share capital at a price of CAD 1.05 per share in return for an overall investment of USD 66 million in the company. Delek will be entitled to appoint two directors to the company's Board and to be represented on the Board's various committees. Delek is not limited in increasing its holdings in Ithaca, and intends to examine such an increase.
Ithaca is a partner in 11 producing oil and gas fields, in three of which it acts as the operator, and including the key asset, Greater Stella Area, which has been in development for several years in which it acts as operator.
This is an important strategic investment for Delek Group in the international market. Delek Group has announced in the past year that it intends to focus on the international energy sector by identifying investment opportunities, with the emphasis on operators that have synergy with its business. The investment in Ithaca is a first and very important step of the Group in an E&P company with a proven track record as an operator.
Using the Group's large cash balances, which at date of publication of the financial statements for Q2 2015 stood at NIS 3.4 billion, due inter alia to the series of successful disposals the Group has made over the last 18 months, the investment in Ithaca will be financed from the Group's own resources.
Asi Bartfeld, CEO of Delek Group: "This deal is a direct continuation of the strategy the Group has announced, with its focus on the energy sector in Israel while creating a strong and stable arm in the international energy market. This is a major step towards expanding our operations in the international market and widening the Group's operations into oil and gas exploration and production, while opening up new opportunities for the Delek Group. Ithaca is synergistic with Delek Group's existing operations. It is an important link in the chain for our operations in this field, and is expected to contribute to the Group's continued growth. This is a company with a most professional and responsible management team, with a great deal of experience in production and a very high standing in the international energy market. I am convinced that together with the existing management we will be able to continue to lead the company to significant additional achievements in the E&P field. For us this is a first and welcome step in extending our operations and strengthening our standing in the international oil and gas exploration and production sector. We intend to continue to take advantage of existing opportunities in the markets and to examine further strategic investments in international companies in the energy field."