"Bloomberg" reports that East Mediterranean Gas Company (EMG) shareholders, including Yosef Maiman, Sam Zell, and Thai energy giant PTT Public Co. Ltd. (SET: PTT), are planning legal action against the Egyptian government over interruptions in natural gas supply, and are seeking more than $8 billion in damages.
Merhav Group SVP and EMG director Nimrod Novik told "Bloomerg" that the shareholders agreed on the action in the wake of three explosions in the past five months that damaged the pipeline, which carries gas from Egypt to Israel.
A fourth attack this morning again halted deliveries.
“The lawyers have advised the government of Egypt as well as the US and other relevant governments that this process is under way," he said, adding that the company would pursue the claims through the International Court of Arbitration, a dispute resolution service run by the Paris-based International Chamber of Commerce.
Yosef Maiman owns 20.6% of EMG through Ampal-American Israel Corporation (Nasdaq: AMPL; TASE:AMPL) and his private company, Merhav Group. PTT owns 25%.
Following the July 4 attack on the pipeline, EMG's gas deliveries to Israel have been 20% of the contracted amounts.
Ampal's share price fell 1.1% on Nasdaq yesterday, before today's attack, to $0.91, giving a market cap of $51 million, and fell 6.4% by midday on the TASE today to NIS 2.90. The share price has fallen over 60% so far this year.
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