Myra and Sarah offshore gas exploration licensee Israel Land Development Company Energy Ltd. (TASE: IE), controlled by Ofer Nimrodi, has allotted 97,215,290 shares to Switzerland's VNG Capital Fund I (Opportunity Fund) at NIS 0.79 per share, for a total investment of $20 million (NIS 77 million). The deal was made at a discount on the company's opening price of NIS 0.82. The deal will be closed on June 5.
VNG will own 9.33% of ILDC Energy when the sale is closed. It also received 5,549,133 Series 2 warrants and 29,767,442 Series 5 warrants, which, if exercised in full, will increase the investment by NIS 40 million.
VNG invests in oil and gas exploration and mining ventures worldwide.
Nimrodi said, "This is a very important transaction ahead of the drilling of wells [at Myra and Sarah], and a vote of confidence in the company, its management, strategy, and assets, by the Swiss fund. The investment meets all the company's financing needs for the exploratory wells, the drilling of which will begin in two weeks, and for the production tests."
ILDC Energy and its affiliates own 41.6% of the Myra and Sarah licenses, and its parent company, Israel Land Development Company (TASE: ILDC), owns 5%. Modiin Energy LP (TASE:MDIN.L) owns 29.2%, its shareholder IDB Development Corp. Ltd. owns 5.6%, IPC Oil and Gas Holdings Ltd. (IPC) (TASE: IPC) owns 13.6%, and GeoGlobal Resources Inc. (AMEX: GGR) owns 5%.
ILDC Energy's share price rose 2.7% after trading in the share was resumed at noon, to NIS 0.84, giving a market cap of NIS 775 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2012
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