Tuesday, July 18, 2017

Delek Drilling to get $980 million for spinning off Tamar stake - REUTERS

JULY 18, 2017 / 2:13 PM / 4 DAYS AGO

JERUSALEM (Reuters) - Israel's Delek Drilling (DEDRp.TA) said on Tuesday it expected to get $980 million from spinning off a 9.25 percent stake in the Tamar natural gas project.

The new company, Tamar Petroleum (IPO-TAMA.TA), is in the process of listing on the Tel Aviv Stock Exchange.

Tamar Petroleum this month raised $650 million in a Tel Aviv debt offering and another $330 million in a share offering on Monday.

The transaction gives the Tamar field, Israel's primary supply of natural gas, a valuation of close to $12 billion.

Delek Drilling, a unit of conglomerate Delek Group (DLEKG.TA), said $323 million of the money raised would be used to pay off early four series of bonds, and the rest, among other things, would be distributed as dividends.