Israeli company Naphtha Israel is set to buy Isramco, a company with oil and gas assets in offshore Israel and onshore in the U.S.

Isramco has this week said that Naphta will pay $121.40 per share in cash for the shares it doesn't already own.

“The $121.40 per share price represents a premium of approximately 10% over the $110.36 purchase price per share initially offered by Naphtha and a premium of approximately 4.4% over the 30 trading-day average price of the Company's common stock as of May 17, 2019,” Isramco said.

Isramco also disclosed that Haim Tsuff, who through various entities controls Naphtha, beneficially owns approximately 73.0% of the outstanding common stock of Isramco.

Isramco's board of directors has approved the merger agreement, and has recommended its shareholders to accept the offer.

Upon closing of the merger, Isramco will become an indirect wholly owned subsidiary of Naphtha. Isramco is expected to remain headquartered in Houston, Texas.

If completed, the merger will result in the company becoming a privately held company and Isramco's common stock would no longer be listed on the NASDAQ Capital Market.

Isramco is engaged in the exploration, development, and production of oil and natural gas properties located onshore in the United States and has ownership of various royalty interests in oil and gas concessions located offshore Israel, including the Tamar and Dalit fields in the Mediterranean Sea.