Shareholders give green light to $1.24bn Ithaca North Sea takeover

Shareholders in Aberdeen-based North Sea-focused oil and gas operator Ithaca Energy Inc have agreed to back a takeover bid valuing the business at US$1.24bn.

Under the proposed deal, Israeli-listed Delek Group will increase its 19 per cent 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.

It has been unanimously recommended by Ithaca’s Board. Ithaca is dual-listed on the Toronto and London Stock Exchanges and is headquartered in Aberdeen.

Law firm Pinsent Masons’ advised on the deal with a team 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.”