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Ithaca shareholders accept Delek bid

Israeli group set to gain dominant stake in Canadian player after gaining required acceptances for offer

Israel’s Delek Group has gained the necessary shareholder acceptances to clear the way for its proposed takeover of Canadian independent Ithaca Energy.

London-listed Ithaca said in a statement that Delek’s C$1.95 per-share offer for the company, which values it at C$841 million (US$645.6 million), has now been accepted by holders of 70.3% of its outstanding shares, having already been backed by the board.

As a result, Delek affiliate DKL Investments will gain a 76% ownership stake in the company through the acquisition of more than 323 million shares.

Ithaca said the take-up by its shareholders satisfies the conditions of the Delek offer, which has earlier been opposed by Ithaca investors including its fourth-largest shareholder Cavendish Asset Management.

However, the bid deadline has been extended to 3 May to give remaining shareholders who have not accepted the offer to do so, Ithaca said.