Insurance company Menorah Mivtachim will invest in Navitas Petroleum projects of up to $150 million.
Navitas Petroleum, the energy exploration partnership headed by Gideon Tadmor (who in the past headed Delek Group's successful exploration business) will shortly offer 25% of its participation units on the Tel Aviv Stock Exchange, for at least NIS 53 million ($15 million), a price that gives the partnership a total valuation of NIS 213 million. The institutional auction for selected investors will commence tomorrow.
Navitas also reported that insurance group Menorah Mivtachim Holdings Ltd. (TASE: MORA) will join it in gas and oil exploration deals. Navitas and Menorah Mivtachim have signed a memorandum of understanding that the latter will co-invest in such deals up to a joint investment of $150 million. A framework agreement is due to be signed within 90 days.
A source familiar with the matter said, "This partnership with one of Israel's largest investment institutions is important as a lever enabling Navitas to undertake large projects that will significantly strengthen its portfolio." He said that the move was important mainly "in the light of growing interest in Navitas's activity in the Gulf of Mexico and the fall in development costs for discoveries in that area."
Menorah Mivtachim manages assets totaling NIS 157 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on September 13, 2017
© Copyright of Globes Publisher Itonut (1983) Ltd. 2017
Gideon Tadmor