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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