Israel's Delek Drilling (DEDRp.TA) said on Tuesday it was forming a new company listed in London to manage all of its gas and oil assets and increase its access to foreign investors.
Delek Drilling, controlled by conglomerate Delek Group (DLEKG.TA), will transfer its ownership to newly formed British firm NewMed Energy and cease its status as a limited partnership.
NewMed will hold and manage 100% of the assets of Delek Drilling, including a 45.34% interest in the Leviathan natural gas reservoir off Israel's Mediterranean coast, where it partners with Chevron (CVX.N), a 22% stake in the nearby Tamar gas field, its rights in two other Israeli gas sites and a 30% holding in the Aphrodite site in Cyprus.
NewMed is expected to publish a prospectus for an initial public offering in London and once the shares are trading, they would be dual-listed in Tel Aviv, Delek said.
Delek Group would retain a 54.71% stake in NewMed.
Yossi Abu, CEO of Delek Drilling, said the restructuring reflected the firm's global role, while the dual-listing would benefit current stakeholders, "increase the exposure of our high-quality assets to international investors and allow NewMed Energy to expand its business and reach new markets".
Delek on Monday asked a Tel Aviv court to order the convening of a general meeting to approve the reorganisation.
It said the restructuring was not expected to result in a change in its ownership structure, since owners of the partnership will receive pro-rated shares in NewMed.
Delek Drilling will remain a private-sub partnership of NewMed and will continue to pay royalties to partnership holders while also retaining obligations to bondholders.
Last week, Delek said it signed a non-binding deal to sell its stake in Tamar to Abu Dhabi's Mubadala Petroleum for $1.1 billion. read more
Delek Drilling's shares were up 2.0% at midday in Tel Aviv. Delek Group was up 2.4%.
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