Israel based energy firm Delek Group has bought a £518m stake in North Sea operator Ithaca Energy.
Ithaca Energy is headquartered in Aberdeen while listed on the Toronto stock exchange.
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Ithaca’s share price has risen significantly in the past two months and rose a further 10% following the announcement.
Delek Group bough 20% stake in Ithaca Energy in 2015.
Law firm Pinsent Masons advised Ithaca Energy Inc on the takeover bid valuing the business at US$1.24bn.
Under the proposed deal Israeli-listed Delek Group will increase its 19% shareholding with a cash takeover offer. Delek proposes to buy Ithaca for 120p per share. The offer values Ithaca’s equity at US$646m and gives the company an enterprise value of US$1.24bn.
The Pinsent Masons’ team was led by Head of Corporate Finance, Rosalie Chadwick, with assistance from Brian Thumath and Nick McManus. Last year Chadwick advised Total on the £585m disposal of the St Fergus gas terminal and other North Sea infrastructure assets.
Rosalie Chadwick said: “We have a relationship with Ithaca dating back a number of years and are delighted to be involved in this next major milestone for the business. It caps of a busy start to the year which has seen a renewed level of interest in North Sea assets as prices have stabilised and expectations adjusted.”
Brad Hurtubise, Ithaca chairman, said: “We are very pleased to announce the offer, which provides an attractive opportunity for all shareholders to secure a premium cash value for their investment following a sustained period of share price growth and at a favourable point in the company’s evolution.”
