Ithaca Energy announces recommended takeover by Delek Group

LONDON -- Ithaca Energy Inc. has announced that it has entered into a definitive support agreement with Delek Group Ltd. on the terms of a cash takeover bid for all of the issued, and to be issued common shares of Ithaca not currently owned by Delek or any of its affiliates for C$1.95 per share.

Highlights:

•  The Offer is for a cash consideration of C$1.95 per share – this equates to £1.20 per share based on the exchange rate on Feb. 3, 2017
• The Offer is unanimously recommended by the board of directors of Ithaca (excluding the Delek-related party directors) and values the entire issued, and to be issued share capital of the Company at C$841 million ($646 million)
• The Offer provides shareholders with the opportunity to crystallize the value of their holdings in cash and represents a 12% premium to the TSX closing price of C$1.74 per share on Feb. 3, 2017 and a 16% and 27% premium to the 30-day and 60-day volume weighted average prices, respectively
• The Offer price represents a substantial premium to the average analyst consensus target price of C$1.60 per share
• The Offer implies a total enterprise value of approximately $1.24 billion
• Delek is an Israeli listed conglomerate with significant natural gas E&P activities in the Eastern Mediterranean and an existing 19.7% shareholder in Ithaca