Subsidiary of Delek acquires Sugar Point that owns oil assets in the North Sea for $ 1.1 billion

Ithaca, a subsidiary of Delek, acquires Sugar Point, a company that owns oil and gas assets in the North Sea - for $ 1.1 billion. Sikar Point holds 11 licenses, including two large producer reservoirs in the North Sea, as well as two undeveloped UK fields.
The deal is expected to increase Ithaca's daily production capacity by 9,500-8,000 barrels, and put Ithaca's daily production at the range of 85,000-75,000 barrels per day.
Siker Point holds 11 licenses, including two of the largest producer reservoirs in the North Sea, alongside the two fields that have not yet been developed and Kambo and Rosbank have been mentioned.
The deal is expected to enable Ithaca to increase the volume of its reserves in the North Sea by about 250 million barrels of gas and oil. Delek said that "most of the transaction was financed on the basis of Ithaca's existing credit facilities (RBL), without the need to increase them" and that "Ithaca will become a partner in two of the largest proven oil discoveries in the North Sea". Safe Point has tax losses of about $ 3 billion.
The total deal is set at $ 1.1 billion, of which $ 200 million in existing Secure Point bonds maturing in March 2026, as long as Secure Point bondholders want to continue in the merged company and not be repaid by Secure Point.
In addition, Ithaca announced its intention to distribute a dividend of $ 135 million in the coming year and $ 200 million in the following years. Idan Wells, CEO of the Delek Group, said that "this is an important business move that will bring Ithaca closer to an IPO in 2022."
This is the second major acquisition in three years of Ithaca in the North Sea. In 2019, Ithaca acquired the operating company of energy giant Chevron, which owned ten gas and oil producing assets. According to Delek, the additional acquisition is another step on the way to the issuance of Ithaca on the London Stock Exchange (and possibly even Tel Aviv), a move that was promised by the company to investors even before the corona.