Tel-Aviv based NewMed Energy (formerly Delek Drilling) and London-listed Capricorn (formerly Cairn) announced on 29 September that they are to merge “creating a Mena gas and energy champion.” What is being labelled as a merger is essentially a takeover: NewMed shareholders will have 89.7% of the post-deal company, which will retain the NewMed name, and Capricorn shareholders 10.3% whilst receiving “a $620mn pre-completion dividend.”

The ‘merger’ talk is in part driven by the deal’s structuring as a reverse takeover via which NewMed will obtain a long-sought listing on the London Stock Exchange (MEES, 7 May 2021), whilst retaining its Tel Aviv listing. NewMed’s key shareholder, Israel’s Delek Group, will have 48% of the post-deal company. (CONTINUED - 1081 WORDS)