The Ticker: Receivers Recommend Globes Be Sold to Russian Oligarch David Davidovich

Delek Drilling, Avner shareholders approve merger; Delek buys 13.2% of North Sea energy firm; Tel Aviv shares end lower in very light trading.

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David Davidovich.
David Davidovich.Credit: Valeriy Levitin, RIA Novosti

Receivers recommend Globes be sold to Russian oligarch David Davidovich

The court-appointed receivers overseeing the sale of Globes recommended on Sunday that the financial daily be sold to Russian oligarch David Davidovich, who has offered to pay 45 million shekels ($11.8 million). The receivers said they preferred the offer from Davidovich – an associate of Russian billionaire Roman Abramovich – over a lower one from Eli Azur, whose properties include The Jerusalem Post. They rejected out of hand a last-minute offer of 52 million shekels from Dan Senor, an American and co-author of the bestseller “Startup Nation,” as not being serious because it was conditioned on completing due diligence. The holding company controlling Globes was two-thirds owned by indebted tycoon Eliezer Fishman, but he lost control of the shares to Bank Leumi, to whom he owes 700 million shekels. Sources at New Media Investments, the vehicle Senor was using to buy the newspaper, complained that the receivers never let it begin the due diligence process. (Nati Tucker and Jasmin Gueta)

Delek Drilling, Avner shareholders approve merger

Shareholders of Delek Drilling and Avner Oil Exploration, the two energy units of Yitzhak Tshuva’s Delek Group, yesterday approved a merger aimed at reducing costs and attracting new investors. The merger, which was first proposed in April,  calls for all of Avner’s assets and liabilities moved into Delek Drilling and Avner dissolved. Delek Drilling and Avner each hold about 15.6% of the Tamar natural gas field, and 22.7% each in the nearby Leviathan field, which is slated to start production in 2019 or 2020. In related news, the two companies said yesterday that Energean had made a $40 million payment for control of the Tanin and Karish gas fields and that control would be transferred to the Greek company in the next several days. Shares of Delek Drilling and Avner both ended the day down 0.4% at 14.26 shekels ($3.73) and 2.69 shekels, respectively. (TheMarker Staff)

Delek buys 13.2% of North Sea energy firm

Delek Group said yesterday it acquired 13.2% of Faroe Petroleum from Dana Petroleum for 42.77 million pounds ($52.6 million) as part of a strategy to expand its international energy activities. Delek bought all of Dana Petroleum 48.06 million shares in Faroe at 89 pence each and became Faroe’s largest shareholder. An oil and gas exploration and production company operating in the North Sea, Faroe’s shares traded on AIM and closed at 99 pence on Friday, giving it a company valuation of 360 million pounds. Its portfolio includes about 60 drilling, evaluation, development and production licenses for oil and gas in the North Sea, in Norway and the United Kingdom. In the first half of 2016 Faroe produced 9,000 barrels of oil equivalent per day, and following acquisition of the additional assets, daily production is expected to grow to between 17,000 and 18,000. Delek Group shares ended down 0.9% at 815.10 shekels ($213.24). (Reuters)

Tel Aviv shares end lower in very light trading

Tel Aviv shares ended lower on Sunda in very light trading. The blue chip TA-25 index ended down 0.1% at 1,461.35 points, while the TA-100 lost almost 0.4% to 1,272.85, as just 595 million shekels ($156 million) in shares changed hands. Teva ended down 1.6% to 139.70 shekels. Ratio led energy shares lower on a 2.4% decline to 33 agorot while Harel topped losers among insurance stocks on a 2.1% decline to 17.11. Shares of Oil Refineries Limited ended down 2% to 1.34 after a major fire broke out at its Haifa facility. Space Communications said it planned to file a shelf prospectus to issue bonds to finance purchase of its Amos 17 satellite from Boeing. Spacecom shares fell 0.4% to 24.89. Housing & Construction Limited fell 0.95 to 7.43 even though it said it would post a $36 million gain on the sale of a 50% stake in a Colombian toll road project. (Omri Zerachovitz)