Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, reported today that it was negotiating to bring in investors who would $300 million inject capital against an allocation of preferred stock in the parent company of Ithaca Energy Limited. In addition, Delek Group reported that it was discussing three-year oil and gas supply agreements under which it would receive payments on account that would provide working capital of up to $150 million. RELATED ARTICLES Tshuva hopes offer to purchase will halt Delek slump Tshuva soothes investors on Ithaca deal A deal too far for Yitzhak Tshuva? Delek seeks partners for Ithaca after cutting bond issue Delek Group's share price has fallen by about 25% in the past three months. A the end of May, Ithaca Energy, which is wholly owned by Delek Group, signed an agreement to buy Chevron North Sea Limited from US energy giant Chevron for $2 billion. The effective consideration is about $1.65 billion, assuming that the cash accumulated through operation of the assets being acquired up to the date of completion of the deal will total some $350 million. The degree of leverage in the deal can be understood from the high interest rate, of over 9%, at which the market priced the bond offering that Delek Group made to finance the deal. Published by Globes, Israel business news - en.globes.co.il - on August 12, 2019 © Copyright of Globes Publisher Itonut (1983) Ltd. 2019
