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.
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.”