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Ithaca Energy agrees Delek Group takeover

Staff Writer |
Ithaca Energy has entered into a definitive support agreement with Israel's Delek Group on the terms of a cash takeover bid for all the shares of Ithaca it does not already own.

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The offer, which has been unanimously recommended by Ithaca's board of directors, values the entire issued and to be issued share capital of the company at C$841m, or US$646m.

The price represents a 12% premium to the Toronto Stock Exchange closing price of C$1.74 per share on 3 February and a 16% and 27% premium to the 30-day and 60-day volume weighted average prices, respectively.

Non-executive chairman Brad Hurtubise said: "We are very pleased to announce the offer, which provides an attractive opportunity for all shareholders to secure a premium cash value for their investment following a sustained period of share price growth and at a favourable point in the company's evolution."

"A special committee of independent directors has fully assessed the offer, with input from the company's financial advisor and an independent valuator, and believes the offer is fair and in the best interest of the company and its shareholders and unanimously recommends that the shareholders tender their shares to the offer."

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