Delek Group Ltd. (TASE: DLEKG), controlled by Yitzhak Tshuva, has increased its holding in its partner in US energy company Noble Energy Inc. (NYSE: NBL), its partner in Tamar, Dalit, Leviathan, and Yam Tethys.
Delek Group's board of directors yesterday approved an investment of $140 million to buy up to an additional 1% of Noble Energy's shares. Delek Group is in talks with banks to increase its non-recourse credit framework to finance the purchase.
If Delek Group's buys all the shares planned, its will own about 4% of Noble Energy, after investing $450 million in the company. Last month, Delek Group made a similar decision. As of yesterday, Delek owns of 2.7% of Noble Energy, after buying shares for $307 million. Delek Group first bought Noble Energy shares a year ago.
Delek Group executives said that the investment fit in with the company's strategy to expand its oil and gas exploration business. Since then, Noble Energy's share price has risen 17%.
Noble Energy CEO Charles Davidson is currently in Israel for a series of meetings to complete preparations for Israel's largest infrastructure project to date: the production of natural gas from the Tamar well and to drill an exploratory well at Leviathan. He also met Minister of Finance Yuval Steinitz to discuss royalties on gas sales.
Published by Globes [online], Israel business news - www.globes-online.com - on August 5, 2010
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