Isramco seeks to increase its shareholders' equity because of the investments needed to develop the Tamar natural gas field, in which Isramco owns 28.75% stake.
Tamar partner Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L) yesterday announced that its board of directors decided that the partnership should immediately raise NIS 113 million in a rights issues. The amount assumes that all the rights will be exercised. The rights issue is based on the shelf prospectus published in May 2009, which expires next month.
Isramco seeks to increase its shareholders' equity because of the investments needed to develop the Tamar natural gas field, in which Isramco owns 28.75% stake.
Last year, Isramco raised NIS 405 million in three rights issues, the last in October 2010. The company has also been negotiating with Deutsche Bank AG (NYSE: DB; DAX: DBK) for a $850 million financing package to finance its share of the Tamar development costs.
Isramco's share price fell 0.7% in morning trading on the TASE today to NIS 0.446, after rising 0.2% yesterday.
Published by Globes [online], Israel business news - www.globes-online.com - on April 13, 2011
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