Ithaca Energy in Talks Over Merger With Eni's U.K. Assets
By Ian Walker
Ithaca Energy said it entered into an exclusive agreement with Eni to merge with the Italian company's U.K. assets in exchange for shares that would give Eni up to 39% of the enlarged group.
The U.K. North Sea oil and gas operator said Wednesday that under the deal being discussed, Eni would transfer all of its U.K. upstream assets, including the recently acquired Neptune Energy assets in exchange for the shares.
Eni granted Ithaca a four-week exclusivity period over the assets to enable the companies to progress the contracts for a deal.
Ithaca said that if the deal goes ahead it would boost the company's near-term cash flows to unlock growth from its development projects, while supporting shareholder returns. The company would also have access to Eni's technical expertise to drive future growth.
Eni's U.K. assets had produced 40,000 to 45,000 barrels of oil equivalent a day and had and reserves of around 100 million barrels at Dec. 31.
Ithaca said any deal will need to be approved by shareholders, adding that the U.K. Takeover panel has granted a dispensation under Rule 9 that requires a majority shareholder to launch a mandatory offer.
Eni didn't immediately respond to a request for comment from Dow Jones Newswires.
Ithaca shares at 1035 GMT were up 3.4 pence, or 2.4%, at 145.60 pence but are currently down 1.4% over the past 12 months. Eni shares were 0.4% lower at EUR14.49 but are up around 17% over the past 12 months.
Write to Ian Walker at ian.walker@wsj.com
(END) Dow Jones Newswires
March 27, 2024 07:05 ET (11:05 GMT)
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