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Delek Group to Acquire Ithaca Energy in $1.24B Deal to Expand International Ops

Delek Group to Acquire Ithaca Energy in $1.24B Deal to Expand International Ops

$3 billion sale by Royal Dutch Shell (AMS:RDSA; NYSE: RDS.A) of a package of UK North Sea assets to UK O&G independent Chrysaor Holdings,  as reported by ExitHub. Delek already owns a 19.7% equity stake in Ithaca. The proposed purchase price represents a 12% premium to the TSX closing price of CAD 1.74 per share on 3 February 2017 and a 16% and 27% premium to the 30 day and 60 day volume weighted average prices respectively. The deal received the unanimous support of Ithaca’s Board of Directors. After completion of the deal, Delek will be the controlling shareholder of Ithaca, which had a market value as of February 3, 2017 of CAD 720 milion (US$555 million), excluding convertible securities. “We are very pleased to announce the offer, which provides an attractive opportunity for all shareholders to secure a premium cash value for their investment following a sustained period of share price growth and at a favourable point in the Company’s evolution,” said Ithaca’s Non-Executive Chairman, Brad Hurtubise. “A special committee of independent directors has fully assessed the offer, with input from the Company’s financial advisor and an independent valuator, and believes the offer is fair and in the best interest of the company and its shareholders and unanimously recommends that the shareholders tender their shares to the offer.” “Today, we are taking another significant step which, if successful, will firmly establish Delek Group as a global E&P company, with international oil and gas assets and strong operational capabilities,” said Asaf Bartfeld, President and CEO of Delek Group. “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.” Delek Group, Israel’s dominant integrated energy company, is the pioneering leader of the natural gas exploration and production activities that are transforming the Eastern Mediterranean’s Levant Basin into one of the energy industry’s most promising emerging regions. Having discovered Tamar and Leviathan, two of the world’s largest natural gas finds since 2000, Delek and its partners are now developing a balanced, world-class portfolio of exploration, development and production assets with total gross natural gas resources discovered since 2009 of approximately 40 TCF. Delek also has a number of assets in downstream energy, water desalination, and in the finance sector.]]>