Proactive Investors - BP (LON:BP) has confirmed that, together with ADNOC, it has made a non-binding offer to take NewMed Energy private through an acquisition of the free float and a partial acquisition of Delek’s stake, which would result in BP and ADNOC holding 50% of NewMed Energy.
In a statement BP said that, along with ADNOC, it intended to form a new joint venture that will be focused on gas development in international areas of mutual interest including the East Mediterranean.
When completed, this would strengthen the broader strategic partnership between ADNOC and BP across oil and gas, hydrogen and carbon capture and storage technology and would deepen the partners’ long-standing relationship, the statement said.
“This proposed transaction is consistent with BP’s stated strategy and financial frame including current guidance for capital expenditure,” BP said.
The two companies intend to explore a range of mechanisms for the formation and potential further expansion of their new partnership.
NewMed Energy said the offer price is 12.05 Israeli shekel per share. This would value the 50% stake at around US$2bn.