Capricorn investor Palliser Capital said on Thursday it opposed Makar’s planned merger with Israel’s Numed Energy, echoing criticism of a previous failed merger plan with Tullow as undermining the company.
The Makar-Numed deal would create an Israel-Egypt-focused gas producer that also includes Numed’s stake in Israel’s vast Leviathan offshore field at a time when Europe seeks non-Russian energy supplies.
This includes a special dividend of $620 million to Capricorn shareholders.
Palisor, who holds investments in about 6.6% of Capricorn, follows hedge fund Irenik Capital Management and tells Capricorn to terminate the deal. Hedge funds often hold stock derivatives, which can be converted into direct shareholding.
Makar last month changed its merger plans with those of West Africa-focused Tullow Oil, whose terms with the Numed proposal were met with opposition from investors.
Palisar said in a statement that Capricorn could be valued at 315 pence per share, “up 29% over the company’s closing share price as of October 25, 2022 and 27% above the implied value of the Numed transaction”.
Makar did not immediately respond to a request for comment.
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