Dankner gets into the oil exploration business

Nochi Dankner is one of the latest Israeli businessmen to become smitten with the dream of discovering oil and gas, and has linked up with Yitzhak Sultan of Modiin Energy with the aim of fulfilling that dream.

On Saturday night, Dankner's IDB Development announced an agreement with the controlling shareholder in Noya Oil, which controls oil and gas exploration partnership Modiin Energy.

The agreement provides for Sultan to sell IDB Development slightly less than half his stake in Noya and half his holdings in the participation units and warrants of the partnership. IDB did not say how much Dankner will pay, but said the amount is not a material sum to the company. Noya is fully owned by Sultan, who is also chairman of IDB Finance Underwriters.

The agreement is subject to approval by the Israel Antitrust Authority. If certain conditions are not met by the end of this year, each party has the right to rescind the agreement. When the deal is finalized, the parties will also sign a shareholder agreement.

IDB also notes that Modiin is considering filing an application with the National Infrastructure Ministry this week for oil exploration licenses for itself and its partners. Modiin has recently announced that it has signed deals to acquire stakes in projects at the Dead Sea and in Ashdod.

Modiin is working to raise funds in an effort to get off the Tel Aviv Stock Exchange watch list. The energy company has a NIS 3 million equity capital deficit, leaving it NIS 7 million short of the minimum equity capital required by the stock exchange.