Under the terms of the deal, Delek Group will pay CAD1.05 per share to acquire 19.9% stake in Ithaca, which is a partner in 11 producing oil and gas fields.
The acquisition is a part of Delek Group’s plan to seek international investment opportunities in the energy sector and makes the Group as the largest shareholder in Ithaca.
Delek Group CEO Asi Bartfeld said: "This deal is a direct continuation of the strategy the Group has announced, with its focus on the energy sector in Israel while creating a strong and stable arm in the international energy market.
"Ithaca is synergistic with Delek Group’s existing operations. It is an important link in the chain for our operations in this field, and is expected to contribute to the Group’s continued growth."
Delek said that the acquisition also marks its first step in expanding its operations and boosting international oil and gas exploration and production sector.
The transaction is subject to the approval of the TSX and other customary closing conditions.
Ithaca Energy plans to use the transaction proceeds to reduce debt and strengthen balance sheet.
Ithaca Energy CEO Les Thomas said: "The investment provides a solid vote of confidence in the long term value of Ithaca by a successful oil and gas investor and provides additional flexibility to execute the financial and strategic priorities of the business."
Image: Ithaca is partner in 11 producing oil and gas fields. Photo: courtesy of Ithaca Energy Inc.
