Israel's Delek Group has entered into an agreement to acquire all stake it does not own in Ithaca Energy in a cash deal worth C$841m ($646m).

Ithaca is a UK based oil and gas operator in the North Sea in which Delek currently has a minority stake of 19.7% through its subsidiary DKL Investments.

The deal, which values Ithaca Energy at approximately $1.24bn, is expected to enable the Israeli listed conglomerate is to expand its international energy operations.

 Delek Group president and CEO Asaf Bartfeld said: “The Ithaca transaction will substantially strengthen our international operational arm, and is a synergistic step to our existing activities. We believe Ithaca will contribute to our continued growth and we look forward to reinforcing and building on our status in international markets.”

Headquartered in Netanya, Delek is said to have considerable natural gas exploration and production operations in the Eastern Mediterranean.

Ithaca Energy non-executive Chairman Brad Hurtubise said that the Delek offer gives an attractive opportunity for all shareholders to gain premium cash value for their investment. 

Hurtubise added: “A Special Committee of independent Directors has fully assessed the Offer, with input from the Company's financial advisor and an independent valuator, and believes the Offer is fair and in the best interest of the Company and its shareholders and unanimously recommends that the shareholders tender their shares to the Offer.”

The transaction is subject to customary closing conditions, including all necessary regulatory approvals. 

Image: ENSCO 100 Drilling Rig. Photo: courtesy of Ithaca Energy Inc.