Delek buys North Sea explorer Ithaca

ISRAELI energy company Delek Group has agreed a takeover deal with North Sea oil and gas explorer and operator Ithaca Energy which values the company at US$1.24bn, including debt.

Delek has offered C$1.95/share (US$1.48/share) for Ithaca, which is in fact incorporated in Canada, despite being headquartered in Aberdeen, UK, valuing the issued share capital at US$646m. The offer is a 12% premium on Ithaca’s closing share price in Toronto on 3 February, the last trading day before news of the deal broke. Delek already owns a 19.7% stake in Ithaca. The offer has been unanimously recommended by Ithaca’s board of directors.

Ithaca’s operated assets include the Causeway and Fionn oil fields in the Northern North Sea, while it also has working interests in the Topaz gas field in the Southern North Sea and the Cook and Pierce fields in the Central North Sea. Delek’s activities are focussed on the Eastern Mediterranean, particularly the Levant Basin. Delek discovered the large Tamar and Leviathan gas fields in the region and also has assets in desalination and downstream energy.

Buying Ithaca will allow Delek to establish itself as a global exploration and production company, according to its president and CEO Asaf Bartfeld.

“The Ithaca transaction will substantially strengthen our international operational arm, and is a synergistic step to our existing activities. We believe Ithaca will contribute to our continued growth and we look forward to reinforcing and building on our status in international markets,” he added.