North Sea oil and gas producer Ithaca Energy said on Tuesday it would buy Eni’s UK upstream oil and gas assets for about £754m in an all-stock deal.
Eni, Italy’s biggest energy company, will transfer its UK business in exchange for 38.5 per cent of Ithaca’s share capital, while the existing Ithaca Energy shareholders will own the remaining 61.5 per cent of the combined group.
The combined company is expected to produce 80,000 to 87,000 barrels of oil equivalent per day in 2024, said Ithaca, which is owned by Tel Aviv-listed Delek Group.
“The combination will create a solid platform which can underpin material shareholder distributions, including an ambition to pay special dividends in 2024 and 2025, as well as future organic and inorganic growth,” Ithaca Executive Chairman Gilad Myerson said in a statement.
Eni had given Ithaca Energy a four-week exclusivity period to make an offer for its UK assets in late March.
Once the deal is completed, Eni will also have the right to appoint two non-executive directors to the board of Ithaca, subject to conditions.
Reuters – by Shanima A