Tensions are rising Givot Olam Oil Exploration Limited Partnership (TASE:GIVO.L) ahead of next week's meeting of the partners. The meeting, originally scheduled for today, has been postponed to March 2 as a group of partners has organized to reduce the royalties to the general partner from future oil sales, if any.
Meanwhile, sources inform ''Globes'' that several foreign investors were in talks with Givot's general partner to buy 2-10% of its royalties. One of the investors offered to buy 5% of the royalties for $280 million, but Givot apparently turned down the offer. Givot director and general partner member Shmuel Laurence Becker handled the negotiations. Givot geologist Tovia Luskin, another general partner member, was a party to the talks.
Givot's general partner will get 20% of the partnership's future revenue, and it appears that the general partner's members are keeping these royalties to themselves and prefer to raise capital through planned offerings.
Trading in Givot Olam's shares has been suspended ahead of a significant announcement. The share price rose 4.5% by early afternoon today to NIS 0.07, giving a market cap of NIS 381 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 21, 2010
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