Delek is entitled to receive its share of the payment of a dividend of $5m expected from Cohen Development
Israel’s Delek Group has divested all of its 51.76% shares in Cohen Development Gas & Oil for NIS207m ($58m) in cash.
The Israeli firm has sold the shares to various buyers in unequal parts, with each buyer purchasing its part separately.
Delek said it is also entitled to receive its share of the payment of a dividend of $5m expected from Cohen Development, which offers oil and gas exploration and production services in Israel.
Delek to use half of the proceeds for current requirements
The firm plans to use half of the proceeds from the share sale for its current requirements.
In a statement, Delek said: “The Company is assessing the accounting implications of this transaction on its financial statements including in the light of the theoretical realization of part of the gas and oil assets alongside realization of the royalties to which Cohen Development is entitled.”
Delek Group is an independent exploration and production company with activities in the UK North Sea and the East Mediterranean. The company has significant holdings in the Leviathan and Tamar natural gas reservoirs in the East Mediterranean.
In February 2020, Delek’s Ithaca subsidiary signed a non-binding Letter of Intent (LOI) with an undisclosed investment firm to jointly establish a new infrastructure company for North Sea assets.
As per the LOI, Ithaca will own 40% stake in the new company that will be established for Ithaca’s North Sea operations while the undisclosed firm will hold the remaining 60% stake.
The new company will purchase two of production platforms including Ithaca’s fully-owned floating production facility FPF-1 proximate to the Stella field as well as the floating production, storage and offloading vessel proximate to the Captain Field.