Delek Drilling and Avner Oil
and Gas, gas exploration partnerships that are units of Delek Group Ltd. (TASE:
DLEKG), controlled by Yitzhak Tshuva, notified the Tel Aviv Stock exchange on
Friday that the general partners in the two companies had held discussions on a
possible merger. The companies said that a merger would enable the companies to
take advantage of their overlapping assets and activities, to benefit from economies
of scale, including streamlining and simplification of financing processes in
connection with the various projects in which they are engaged, first and
foremost the development plan for the Tamar and Leviathan gas reservoirs, as
well as more efficient management structures and savings of management costs.
The
boards of directors of the general partners have appointed special committees
authorized to examine all aspects of a merger deal, and to take whatever steps
may be necessary, including engaging external consultants, to reach a merger
agreement, or a decision that a merger is not worthwhile.
The
companies stressed in their notice that if the committees recommend a merger
transaction, it will be subject to approval by the partnerships' audit committees,
the boards of the general partners, and the participation unit holders, as well
as to regulatory approval.
Delek
Drilling and Avner Oil and Gas each hold 15.625% of Tamar and 22.67% of
Leviathan.
(
www.
globes.co.il)