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S&P puts Ithaca Energy on positive watch
S&P said it placed Ithaca Energy Inc.’s B- long-term corporate credit rating on CreditWatch with positive implications.
The agency also said it placed on positive watch the CCC rating on Ithaca's $300 million senior unsecured notes due 2019. The recovery rating remains at 6, indicating 5% expected default recovery.
The positive watch follows news that the company entered a definitive agreement with Israeli Holding Company Delek Group Ltd. for a cash takeover bid, S&P explained.
The transaction gives a market value of $1.24 billion to Ithaca Energy, the agency noted.
Delek already owns about 19.7% of Ithaca, S&P added.
The deal is subject to a minimum tender condition stipulating that more than 50% of the common shares, excluding Delek Group's current stake, are brought, the agency said.
If the transaction is finalized as planned, Delek Group will own at least a minimum controlling stake of 60% of Ithaca's common shares or even acquire full control, S&P said.
The companies are expected to announce the transaction's final details within the next 60 days, the agency said.
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