Delek Offered Funds to Invest in Ithaca

Maritime Activity Reports, Inc.

September 24, 2019

Image: Delek Group

Image: Delek Group

Israeli oil and gas company Delek has received an offer from an unnamed investor for a potential investment of up to $250 million into its North Sea focused subsidiary Ithaca Energy.

"Delek Group, received a signed offer from an international trading company to make an equity investment in Ithaca’s parent company through the purchase of USD 100 million in preferred shares of Ithaca’s parent company," said a stock exchange filing.

The preferred shares carry a guaranteed dividend yield, and will automatically convert to approximately 4% of common shares at the time of Delek Group's initial public share offering, reflecting an equity value of USD 2.5 Billion for Ithaca Energy (pre money).

In addition, there will be an agreed adjustment mechanism to the investment linked to the actual IPO price, it said.

The offer also includes entering into agreements with the Investor for the marketing of oil and gas for a five years period. As part of this the Investor has proposed an advance payment on account of future sales, as is customary in transactions like this, which will be used to fund Ithaca’s working capital in the sum of up to USD 150 Million, said the statement.

Ithaca in July concluded its senior notes offering, raising $500 million, in connection with the acquisition of Chevron North Sea Limited (CNSL).

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