Delek to sell $1.2b Tamar stake in TASE IPO

Tamar

Delek Drilling will spin off a 9.25% stake to new company Tamar Petroleum in order to divest from Tamar, in the biggest ever TASE offering.

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

© Copyright of Globes Publisher Itonut (1983) Ltd. 2017

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