Israel Corp. (TASE: ILCO) subsidiary IC Green Energy Ltd. (ICG) has acquired 43% of German biodiesel company Petrotec AG (XETRA: PT8) from Warburg Pincus at €2.70 per share, reflecting a company value of €28.3 million.
ICG is also set to make a public offer to purchase the public's shares in Petrotec, which rose 22% in response to the announcement to €2.80. The acquisition is relatively cheap for Israel Corp., given that Petrotec went public two years ago at €17 per share, only to see its share tumble.
Petrotec produces biodiesel from used cooking oil, and therefore does not compete for food crops. The company has two plants in Germany which produce 185,000 tons of biodiesel a year. The company collects used cooking oil for recycling in Europe and the US.
ICG CEO Yom Tov Semia said, "The acquisition of Petrotec is ICG's first investment in the European market as part of our strategy to deepen its activity in the value chain in the biofuels market."
Semia recently told "Globes" that ICG was mainly interested in solar energy, and mid-generation and next-generation biofuels, which do not compete against food crops. "We're examining both Israeli and foreign firms," he said.
Last week, ICG acquired the controlling interest, reportedly about 60%, of Israeli thermoenergy systems developer start-up HelioFocus Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on September 1, 2008
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