Yitzhak Tshuva-controlled Delek Group Ltd. (TASE: DLEKG) wholly-owned subsidiary Delek Infrastructures Ltd. has acquired 84% of Eshkol Gat Ltd., which is planning to build a 240-megawatt natural gas-driven cogeneration power station in the Kiryat Gat industrial zone. Delek did not disclose the amount of the deal.
Eshkol Gat has an option to buy the land zoned for the power station, which will cost an estimated $280 million to build. Eshkol Gat's current owners will retain the remaining 16% of the company, and have an option to buy back 10% of the company from Delek, to reach a 26% holding.
Delek Infrastructures subsidiary Delek Ashkelon Ltd. operates an 87-megawatt power plant on the premises of the Ashkelon desalination plant, in which Delek Group is a partner through IDE Technologies Ltd.. The power plant supplies electricity to the desalination facility, Mekorot National Water Company, a textiles factory of Nilit Ltd., and Israel Electric Corporation (IEC) (TASE: ELEC.B22).
Delek Group's share rose 0.8% in morning trading to NIS 805.20.
Published by Globes [online], Israel business news - www.globes-online.com - on January 7, 2010
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