Steinmetz and Sagi mull London IPO for Pelagic

The billionaires each need $85 million to develop the licenses between Israel's Leviathan and Cyprus's Block 12.

Teddy Sagi and Beny Steinmetz, who each hold 42.5% of the rights to the Pelagic exploration licenses, are mulling how to raise capital to finance their share of the development plans for the gas and oil exploration licenses. It is believed that $200 million is required. Sources inform "Globes" that while an IPO on the Tel Aviv Stock Exchange had been considered, market conditions have persuaded Sagi and Steinmetz to cancel that option and consider a London IPO instead.

The two billionaires are also considering selling part of their rights to a new investor who will bear the development costs.

Pelagic encompasses six offshore licenses in Israel's economic waters and borders the Leviathan license to the east and Cyprus's Block 12 license to the west. In both of these neighboring licenses, Noble Energy Inc. (NYSE: NBL) has discovered proven gas reserves in commercial quantities. The Pelagic licenses other owners are Israel Opportunity Energy Resources LP (TASE: ISOP.L), which holds 10% and Norwegian company AGR Group, which holds 5%.

Thus Sagi and Steinmetz will each need $85 million to develop the licenses.

Spokesmen for Teddy Sagi and Benny Steinmetz declined to comment.

Published by Globes, Israel business news - - on March 13, 2012

© Copyright of Globes Publisher Itonut (1983) Ltd. 2012

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018