Israel Corp CEO Nir Gilad
Photo: Sivan Farag
Israel Corp to up stake in Peru's Edegel
Israeli holding company says its wholly owned subsidiary Inkia Energy plans to raise its stake in Peru's larrgest electricity generator to about 25% from 14% in three steps
Holding company Israel Corp said on Sunday its wholly owned subsidiary Inkia Energy plans to raise its stake in Peru's Edegel to about 25% from 14% in three steps.
Edegel, controlled by Italian utility Enel, is Peru's largest electricity generator with production capacity of 1,700 megawatts, Israel Corp said in a statement. It operates seven hydroelectric power plants and seven thermal plants.
In the first stage Inkia will offer to buy 3.47% of Edegel from shareholders with the value of Edegel to be determined by an evaluator.
Israel Corp said it could not estimate at this point the cost of the share acquisition but if it bought the full amount at the market price it would be $47 million.
Inkia plans to buy another 6.4% for $50 million from its partner in the holding by exercising its right of first refusal, followed by the purchase of 0.4% from another partner.
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