Mubadala gives Aaron Frenkel option on 11% of Tamar rights

Israeli businessman Aaron Frenkel holds an option to buy 11% of the rights to the Tamar gas field. The option was given to him by Mubadala Petroleum, which is owned by the Abu Dhabi government, for $500 million. This is revealed in the financial report of Tamar Petroleum, which itself holds a 16.75% stake in the offshore gas field. Frenkel has become one of the major shareholders in Israeli real estate company Bayside Land Corp. Ltd. (Gav Yam) (TASE:BYSD1) over the past year.

In September, Mubadala agreed to buy 22% of the rights of the Tamar gas field (as well as the yet to be developed Dalit field) for $1 billion. According to the terms of the deal, Mubadala will buy the shares from Delek Drilling Limited Partnership (TASE:DEDR.L) through two companies set up for the purpose.

Last Thursday, Tamar Petroleum published its third quarter financial report and in a marginal remark attached to the report revealed for the first time the existence of the option that Frenkel can exercise.

Frenkel has six months to complete the deal from the date of the signing of the final agreement between Delek Drilling and Mubadala. In other words, Frenkel has the option of buying 11% of the Tamar field for $500 million, on condition that Mubadala does complete the deal.

Sources familiar with the matter have told “Globes” that Frenkel had bid in the tender managed by Delek Drilling to sell its full rights (22%) in the Tamar and Dalit fields. But Frenkel’s bid was much lower than that of Mubadala’s bid.

“Globes” has also been told that the information about Frenkel’s involvement has been passed onto the relevant government ministries and that Frenkel recently joined meetings with representatives of Mubadala and Israeli government ministries, regarding the receipt of regulatory approvals for the deal. In addition, the other Tamar Partners have been informed about the arrangement, and one of them, Tamar Petroleum, has now told its investors.

Delek Drilling said, “A sales deal was signed for the Tamar holdings with Mubadala and this was fully reported as required by law. Delek Drilling is not a party to the options deal between Mubadala and Mr. Frenkel.”

Published by Globes, Israel business news – en.globes.co.il – on November 22, 2021.

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