NewMed Energy seeks higher offer from BP, ADNOC – report

Delek Group’s (TASE: DLEKG) Mediterranean energy exploration and production unit NewMed Energy (TASE: NWMD) is asking British Petroleum (BP) and Abu Dhabi National Oil Company (ADNOC) to raise their $2 billion offer for a 50% stake in the company, “Reuters” reports.

A panel set up by NewMed Energy to review the offer has recommended raising the asking price by over 10%, sources told “Reuters” putting the entire deal in doubt.

The offer by ADNOC and BP, announced in March, was seen as another sign of the strengthening economic ties between Israel and the UAE since the Abraham Accords were signed three years ago.

The independent panel of three members was set up by NewMed to examine the terms of the $2 billion offer and seek competing bids. The panel, however, has not received any other offers, several sources close to the matter have told “Reuters.”

“Reuters” adds that the panel has recommended increasing the asking price by 10%-12%, or up to $250 million, due to rising energy prices and the depreciation of the shekel since March, the sources told “Reuters.”

A source close to the talks added, “There is joint frustration at how the process has been handled and there is real jeopardy of people walking away,” Although another source told “Reuters” that NewMed is still committed to the deal going ahead. NewMed’s shares have risen by over 50% since the March announcement, closing at NIS 11.30 today, still remain below BP and ADNOC’s offer price of NIS 12.05 per share.

BP, Adnoc and NewMed all declined to comment “Reuters” said.

Published by Globes, Israel business news – – on October 2, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

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