After jumping 290% yesterday, Sefen Industries and Investments Ltd. (TASE: SEFN) today officially announced that it is in fact buying 10% of the rights in the Sarit license for NIS 1.67 million.
Sarit is an onshore exploration license, located near Ashdod.
By close of trading, Sefen shares were continuing yesterday's momentum, rising around 17% to NIS 3.88. The shares were actually up by as much as 150% earlier today.
Sefen is a stock market shell, controlled by a investors including chairman Aharon Cohen. Cohen bought 50.58% of Sefen's shares last May.
Sefen is buying the stake from Aaron Hirschberg, and will also grant him options on 750,000 Sefen shares. The exercise price of the options is NIS 0.32, putting it deep in the money (even after adding NIS 0.68 per share upon exercise, as per the agreement). The options expire in October 2011.
Sefen joins the other owners of the Sarit license - Lapidoth Heletz, Modi'in Energy, Ratio Oil Exploration (1992) LP (TASE:RATI.L), and Israel Opportunity Energy Resources LP, owned by Rony Halman and Uri Aldubi.
Published by Globes [online], Israel business news - www.globes-online.com - on September 14, 2010
© Copyright of Globes Publisher Itonut (1983) Ltd. 2010