Israeli energy company Delek reported on July 6, 2017, that the company is set to divest 9.25 % in Tamar and Dalit fields offshore Israel, to a special purpose company named Tamar Petroleum.
According to the sale plan, Tamar Petroleum will offer securities to the public (equity and debentures) that will be registered for trading on the Tel Aviv Stock Exchange.
Tamar Petroleum will use the funds raised from the offering to purchase the rights in the fields that are sold by Delek.
The profits and profit from future sales of all Delek holdings in the fields, are expected to be mainly used by the Delek to distribute profits, and for early repayment of debentures.
Israeli business news website Globes has said that Delek has started offering a $650 mln bond on the Tel Aviv Stock Exchange in Tamar Petroleum, and if successful, Tamar Petroleum will then offer shares to the public in 2 weeks.
The Tamar/Dalit divestment comes as part of the agreement with the Israeli authorities under which Delek needs to sell its entire 31.3 % stake in Tamar, to increase competition and avoid creation of monopoly in the country’s gas sector.