Ithaca Energy combines with Eni's North Sea business
Adds CEO and stake paragraph 2, Eni strategy paragraphs 3,4
MILAN, Oct 3 (Reuters) -Ithaca Energy ITH.L completed a 754 million pound ($993 million) deal to buy nearly all of Eni's ENI.MI UK oil and gas producing assets, it said on Thursday, an all-share transaction to create one of the biggest independent energy companies in the North Sea.
Under the deal announced in April, Italy's Eni got a stake of around 38.7% in North Sea-focused Ithaca Energy and has appointed Eni UK former Managing Director, Luciano Vasques, as the CEO of the combined group.
The move is part of Eni's so-called 'satellite' strategy through which it has been spinning off businesses focused on specific geographical areas inorder to attract investors interested in those regions.
Under the same strategy, Eni has created Azule Energy, a joint venture with BP BP.L focused on Angola, and Norway oil and gas company Vaar Energi VAR.OL with a private equity firm.
Ithaca is buying all of Eni's oil and gas producing assets in Britain, excluding its East Irish Sea assets and its carbon capture and storage (CCUS) activities.
Tel Aviv-listed Delek Group DLEKG.TA which until recently owned an 82.70% stake in Ithaca according to LSEG data, now holds 50.7% with the completion of the deal.
Eni is "a fully committed, long-term and supportive shareholder of Ithaca", it said in a statement.
($1 = 0.7598 pounds)
Reporting by Gianluca Semeraro and Francesca Landini in Milan and Arunima Kumar in Bengaluru; editing by Gavin Jones and Elaine Hardcastle
Related Assets
Latest News
Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.
All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.
Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.
