Yitzhak Tshuva’s Delek Group is taking advantage of opportunities in the international energy market and has become the largest shareholder in international operator Ithaca Energy. Delek is not limited in increasing its holdings in Ithaca, and intends to examine such an increase.
Ithaca shares have sunk more 60 percent since June 2014, when the oil price started to decline. The company said it would use Delek’s investment to strengthen its balance sheet and reduce debt. Ithaca has a market value of $223 million and equity of $861 million.
trading on the Toronto Stock Exchange (TSX) and the Alternative Investment Market (AIM) in London, Ithaca operates in oil and gas exploration and production in the North Sea.
Delek Group will hold approximately 20 percent of Ithaca for an overall investment of $66 million and will be entitled to two places on its Boards.
The investment in Ithaca will be financed from the Group’s own resources.
Ithaca is a partner in 11 producing oil and gas fields, in three of which it acts as the operator, and including the key asset, Greater Stella Area, which has been in development for several years in which it acts as operator. One of these projects is in advanced development and will begin production in mid-2016.
Asi Bartfeld, CEO of Delek Group: “This is an important strategic step for Delek Group through expanding its operations and strengthening its position on the international market. We intend to continue to take advantage of opportunities in the markets and to examine further strategic investments in international companies in the energy field”