Delek Group Ltd., a partner in Israel’s two largest offshore natural gas fields, said a unit has acquired 20 percent of Canada’s Ithaca Energy Inc. for about $66 million as part of its strategy to transform itself into a global energy company.
An unnamed, wholly-owned subsidiary of Delek signed a binding investment agreement with Ithaca, which is traded on the Toronto Stock Exchange and London’s Alternative Investment Market, Delek Group said in a statement on Oct. 9. The acquisition, financed through Delek’s own resources, would make the unit the largest shareholder in Ithaca. Delek said it could increase its stake in Ithaca “as appropriate.”
The acquisition is “an important strategic step for Delek Group on its way to increase its activity and establish its position in the international market,” Asaf Bartfeld, Delek chief executive officer, said in an e-mailed statement on Sunday. “We plan to continue to take advantage of opportunities in the market and assess additional strategic investments in international energy companies.”
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Israel’s Delek buys $66 million stake in North Sea oil producer, Canada’s Ithaca