Delek Drilling, Avner in merger talks


The two Delek Group gas exploration subsidiaries each hold 15.625% of Tamar and 22.67% of Leviathan.


Delek Drilling and Avner Oil and Gas, gas exploration partnerships that are units of Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, notified the Tel Aviv Stock exchange on Friday that the general partners in the two companies had held discussions on a possible merger. The companies said that a merger would enable the companies to take advantage of their overlapping assets and activities, to benefit from economies of scale, including streamlining and simplification of financing processes in connection with the various projects in which they are engaged, first and foremost the development plan for the Tamar and Leviathan gas reservoirs, as well as more efficient management structures and savings of management costs.

The boards of directors of the general partners have appointed special committees authorized to examine all aspects of a merger deal, and to take whatever steps may be necessary, including engaging external consultants, to reach a merger agreement, or a decision that a merger is not worthwhile.

The companies stressed in their notice that if the committees recommend a merger transaction, it will be subject to approval by the partnerships' audit committees, the boards of the general partners, and the participation unit holders, as well as to regulatory approval.

Delek Drilling and Avner Oil and Gas each hold 15.625% of Tamar and 22.67% of Leviathan.

Published by Globes [online], Israel business news - - on April 17, 2016

© Copyright of Globes Publisher Itonut (1983) Ltd. 2016

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