Israel’s Delek Drilling (DEDRp.TA) said Tuesday that it is forming a new London-based company to manage all of its gas and oil assets and expand access to foreign investors.
Delek Drilling, controlled by the Delek Group (DLEKG.TA) conglomerate, will transfer its ownership to the newly formed UK firm NewMed Energy and terminate its limited partnership status.
NewMed will own and operate 100% of Delek Drilling’s assets, including a 45.34% stake in the Leviathan natural gas field off Israel’s Mediterranean coast, where it partners with Chevron (CVX.N), a 22% stake in the nearby Tamar gas field. the field, its rights to two other Israeli gas facilities and a 30% stake in the Aphrodite block in Cyprus.
NewMed is expected to publish a prospectus for an initial public offering in London and, once the stock starts trading, it will be dual listed in Tel Aviv, Delek said.
Delek Group will retain 54.71% of NewMed shares.
Yossi Abu, CEO of Delek Drilling, said the restructuring reflected the company’s global role, while the dual listing would benefit current stakeholders, “increase the availability of our high quality assets to international investors and enable NewMed Energy to expand its business and reach customers. new markets ”.
On Monday, Delek applied to the Tel Aviv court to call a general meeting to approve the reorganization.
It states that the restructuring will not change the ownership structure as the owners of the partnership will receive pro rata stakes in NewMed.
Delek Drilling will remain a private sub-partnership of NewMed and will continue to pay royalties to partnerships holders while maintaining a commitment to bondholders.
Delek said last week that he had signed a non-binding deal to sell his stake in Tamar to Mubadala Petroleum in Abu Dhabi for $ 1.1 billion. read more
Delek Drilling shares rose 2.0% in Tel Aviv at noon. Delek Group shares rose 2.4%.
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