ISRAEL’s Delek Group has established a strong position in the North Sea after taking control of Ithaca Energy following a bid that valued the firm at around £1 billion, in spite of facing opposition from a leading investor.

Delek said the holders of 70.23 per cent of shares in Aberdeen-based Ithaca it did not already own had accepted its C$1.95 (£1.13) cent per share offer.

The acceptance rate clearly exceeded the 50 per cent minimum Delek set in spite of some concerns about the value of the offer.

Cavendish Asset Management had said Delek was looking to pay a bargain price for a company that is generating lots of cash from its operations in spite of the low oil price.

Ithaca recently started production from the giant Stella field east of Aberdeen.

Cavendish said last month that 150p per share would be a much fairer offer but would still not reflect Ithaca’s potential. At the time it had a three per cent stake in Ithaca, which is listed in London and Toronto.

Led by chief executive Les Thomas, Ithaca directors said the offer reflected a full valuation for Ithaca taking its reserves and planned projects into account and would enable shareholders to avoid downside risks.

Delek yesterday underlined the significance of a deal which will put the group in control of a North Sea business for the first time.

“The success of our tender offer is a significant step in the realization of Delek Group’s strategy, as we increasingly evolve into an international energy company,” said chief executive Asaf Bartfeld.

He added: “We believe in the great potential of Ithaca and its ability to broaden its activities in the markets in which it operates. Ithaca has a highly professional and quality management team that has given us solid support from the early stages, and we will continue to cooperate closely together.”

Ithaca expects to produce an average 22,000 barrels oil equivalent daily in the North Sea this year.

Delek gave no indication of what it will do with the 13 per cent holding in Aberdeen-based Faroe Petroleum it acquired in December.

Delek acquired a 19.9 per cent stake in Ithaca for $66m in October 2015.

It has made two big finds off Israel in recent years.

The company extended the offer period to 3 May.

In a statement regarding Ithaca, Paul Mumford of Cavendish Asset Management noted: “Delek’s intentions for the company are unclear and de-listing is a distinct possibility, so remaining shareholders should consider whether there are better options elsewhere in the oil and gas sector.”

A spokesperson for the fund manager declined to comment when asked if Cavendish had retained its holding in Ithaca Energy.