MILAN – Ithaca Energy completed a 754 million pound ($993 million) deal to buy nearly all of Eni’s (NYSE: E) 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, spinning off businesses focused on specific geographical areas to attract investors interested in those regions.
Under the same strategy, Eni (NYSE: E) has created Azule Energy, a joint venture with BP (NYSE: BP) focused on Angola, and Norway oil and gas company Vaar Energi 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 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)
(Source: Reuters)
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