Shaldieli Ltd. (TASE: SHDL-M) is in advanced negotiations to acquire 50% of the rights of Israel Petroleum Company (IPC) in the Myra and Sarah offshore licenses, in exchange for allotting 90% of its shares to IPC. IPC owns 13.6% of the two licenses, located offshore from Netanya, near the Tamar discovery.
On October 11, IPC and the owners of the 50% of the company IPC Cayman Ltd., signed an agreement to sell 50% of the Myra and Sarah rights to Ofer Investments Ltd., controlled by Sammy and Yuli Ofer, for a commitment to invest up to $28 million in the first two test wells at the licenses. If this agreement is closed, Ofer Investments and Shaldieli will own IPC's rights in the two licenses in equal shares.
Shaldieli said that IPC will use the proceeds of the acquisition to finance IPC's share in the two wells at Myra and Sarah.
Shaldieli added that when the deal is completed, its name and articles of incorporation will be changed.
Upswing Capital Ltd. chairman and CEO Yaron Yenni owns 45.1% of Shaldieli and Asia Development (EDBM) Ltd. owns 27.66%.
Shaldieli's share price was unchanged by mid-afternoon at NIS 2, giving a market cap of NIS 22.5 million.
Published by Globes [online], Israel business news - www.globes-online.com - on October 17, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010