The Delek Drilling (TASE: DEDR) energy exploration partnership, controlled by Delek Group Ltd. (TASE: DLEKG), has embarked on a substantial restructuring which will see it becoming a British company traded on the London Stock Exchange and in Tel Aviv. Delek Drilling filed a request in the Tel Aviv District Court today in accordance with section 350 of the Companies Law.
Under the plan published today, ownership of the partnership will pass to a new company, NewMed Energy, which will be listed on the London Stock Exchange, and later on the Tel Aviv Stock Exchange as well. NewMed Energy is a new British company that recently filed initial listing documents with the UK Financial Conduct Authority (FCA).
The new company is meant to wholly control Delek Drilling, and day-to-day management of Delek Drilling's gas and oil assets will be transferred to it. At the same time as advancing approval procedures within the partnership and vis-a-vis the relevant regulators, NewMed Energy will publish a prospectus for a flotation on the London Stock Exchange.
Delek Drilling holds 45.34% of the rights in the Leviathan gas reservoir, 22% in the Tamar reservoir (until the sale of the reservoir is completed in accordance with the Israeli government's gas plan), 30% of the Aphrodite field in Cyprus, rights to receive royalties on the Karish and Tanin gas reservoirs, and other assets. The structural change will not entail any practical change in the ownership structure, as holders of participation units in Delek Drilling will receive shares pro rata in NewMed Energy. Delek Drilling's commitments on royalty payments and to its bondholders will also not change.
Section 350 of the Companies Law enables Delek Drilling to convene a general participation unit holders meeting to approve the decision to delist the partnership from the Tel Aviv Stock Exchange and replace all the participation units with shares in NewMed Energy.
Delek Drilling CEO Yossi Abu said, "The structural change in the Delek Drilling partnership and the expansion of our trading base to reflect the fact that we are a global energy company, recognized and admired in the international energy community, is a strategic step at this point in time. On the basis of countless conversations we have had with foreign investors, I believe that being traded on the London Stock Exchange, alongside continuation of our listing in Tel Aviv, will benefit our current participation unit holders, boost exposure of our high quality assets to international investors, and enable NewMed Energy to expand its activity and reach new places."
Published by Globes, Israel business news - en.globes.co.il - on May 4, 2021
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