KEY POINTS
- Delek and Eni raised $143.2 million via a 3% stake sale in Ithaca Energy.
- Delek now holds 50.5% of Ithaca, while Eni retains about 36%.
- The move balances shareholder liquidity with continued control of the UK oil producer.
In an effort to reduce their holdings while maintaining firm control over the North Sea oil and gas producer, Italian oil giant Eni SpA and Israeli investment firm Delek Group Ltd. sold a portion of their shares in UK-based Ithaca Energy Plc for approximately £106 million ($143.2 million).
According to bookrunner Peel Hunt, the two shareholders sold 49.6 million common shares at 213.75 pence each through an accelerated bookbuild.
The sale, which accounts for about 3% of Ithaca’s total outstanding stock, coincides with a resurgence in investor interest in energy companies that have access to the UK continental shelf.
Delek and Eni Keep Controlling Stakes
After the deal, Delek will own roughly 50.5% of Ithaca, while Eni will own almost 36%. The London-listed producer, which has been establishing itself as a major force in the UK’s North Sea industry, is now owned by both businesses.
While London lawmakers debate higher taxes on fossil fuel profits, Ithaca has garnered market attention for its production footprint and portfolio of projects in the basin. As oil prices continue to fluctuate and European governments advocate for a quicker shift to renewable energy, investors have been considering the prospects for offshore producers.
The share sale gives Delek liquidity while preserving its strategic control over Ithaca, one of its main non-Israeli energy assets. The partial divestment represents Eni’s ongoing balancing act between funding the company’s larger energy transition strategy, which includes scaling low-carbon fuels and renewables, and strengthening its upstream portfolio.
The transaction’s timing also emphasizes how the North Sea investment landscape is changing. Ithaca, which went public on the London Stock Exchange in late 2022, has managed to stay strong with shareholders despite navigating a tight capital environment, windfall tax debates, and fluctuating crude prices.
Even as they book proceeds during a period of shifting investor sentiment toward oil and gas stocks, Delek and Eni demonstrate their confidence in Ithaca’s long-term prospects by selling off a comparatively small portion of their holdings.
In a time when investments in fossil fuels are under increased scrutiny, the deal demonstrates how significant shareholders are adjusting their exposure to legacy energy assets while making sure they continue to have a say in corporate strategy.
