Delek Group Ltd. (TASE: DLEKG) unit Delek Drilling LP (TASE: DEDR.L) has notified the Tel Aviv Stock Exchange (TASE) that it is to sell 9.25% of its rights in the Tamar and Dalit offshore gas fields in an IPO and bond offering worth about $1.2 billion - the largest ever offering on the TASE. The floatation should take place next month.
Leader Underwriters will lead the offering, which will involve the setting up of a new special purpose vehicle (SPV) called Tamar Petroleum to hold the 9.25% stake in Tamar and Dalit (nearly one third of Delek's holdings in the field). When the IPO is completed then Tamar Petroleum will have a large enough market cap to be listed on the Tel Aviv 35 Index.
Tamar Petroleum will issue up to $650 million in bonds in order to partly redeem some $1.6 billion in bonds that Delek has placed with institutions.
Delek, controlled by Yitzhak Tshuva, needs to sell its entire 31.3% stake in Tamar as part of antitrust arrangements to end its monopoly of Israel's gas resources as it also has a major stake in the huge Leviathan field.
Noble Energy Inc. (NYSE: NBL) needs to reduce its stake to 25% from 36% as part of these arrangements and has already sold 3% of Tamar to Harel Insurance Investments and Financial Services Ltd. (TASE: HARL) last year, reflecting a value of $12.3 billion for the entire field.
Published by Globes [online], Israel business news - www.globes-online.com - on June 22, 2017
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