Oil deal in North Sea
Ithaca agrees to £519m offer from Israeli firm
Ithaca Energy has agreed to a £519 million takeover offer from Israeli-listed Delek Group.
The recommended cash bid for the Aberdeen-based company equates to £1.20 per share based on the exchange rate on 3 February. It implies a total enterprise value (equity and debt) of £1 billion.
It provides shareholders with the opportunity to crystallise the value of their holdings in cash and represents a 12% premium to the TSX closing price of C$1.74 per share on 3 February and a 16% and 27% premium to the 30 day and 60 day volume weighted average prices respectively.
The US$646m (£518.7m) offer price represents a substantial premium to the average analyst consensus target price of C$1.60 per share.
Delek is a conglomerate with significant natural gas exploration and production activities in the Eastern Mediterranean and an existing 19.7% shareholder in Ithaca.
Brad Hurtubise, non-executive chairman, said: “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.
“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.”
Crown Ocean Capital, which has been agitating for changes on the board of Edinburgh-based Bowleven, has snapped up a 14.87% stake in the Africa-focused business.