Delek bids $646M for remaining stake in Ithaca Energy
February 07, 2017
Energy Exploration | Aberdeen, UK | Corporate Acquisition
Israel's Delek (TLV: DLEKG) has agreed to acquire Ithaca Energy (LON, TSX: IAE) in a bid that carries an implied total enterprise value of approximately $1.24 billion. The cash takeover at C$1.95 (~$1.49) per share represents a 12% premium to Ithaca's closing price on February 3. Dalek currently holds a 19.7% stake in Ithaca, and the company's board has unanimously approved the deal. Minority shareholders Artemis Investment Management and Cavendish Asset Management, meanwhile, which together hold an 8% stake in the company, consider the offer too low according to Reuters. Ithaca's shares jumped on the news to close the trading day in Toronto up over 11% at C$1.94 (~$1.48) apiece.