Delek takes over Canada's Ithaca Energy

Yitzhak Tshuva

Over 70% of Ithaca's other shareholders accepted Delek's offer. Delek will pay about CA$ 470.5 million for their shares.

Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, announced on Friday its offer to acquire common shares of Ithaca Energy Inc. had been accepted by 70.3% of the offerees.

Delek will pay approximately CA$ 470.5 million (approximately $350 million) for the shares. Before the offer, Delek Group held 19.7% of Ithaca's share capital. Following the response to the offer as stated above, it will hold (through a subsidiary) 76% of Ithaca's common shares.

A consequence of the success of the offer is that Delek Group will start to consolidate Ithaca's results in its financial statements. The investment in Ithaca held before the offer will be measured at fair value,. The difference between the fair value and book value is estimated at a profit of approximately NIS 150 million.

Ithaca's remaining shareholders have until 5:00pm Toronto time on May 3, 2017 to accept the offer and deposit their shares.

Ithaca Energy is an international energy company active in the North Sea, with operational experience, including deep water drilling, development of reservoirs, and production of oil and gas.

Delek Group CEO Asaf Bartfeldsaid, "The success of our tender offer is a significant step in the realization of Delek Group's strategy, as we increasingly evolve into an international energy company. We believe in the great potential of Ithaca and its ability to broaden its activities in the markets in which it operates. Ithaca has a highly professional and quality management team that has given us solid support from the early stages, and we will continue to cooperate closely together, to implement the strategy and goals of the company."

Published by Globes [online], Israel business news - www.globes-online.com - on April 23, 2017

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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