Delek Group Ltd. (TASE: DLEKG) has signed a non-binding memorandum of understanding (MOU) with Rapac Communication and Infrastructure Ltd. (TASE: RPAC) to sell its rights in the special purpose company that plans to build a power station in Kiryat Gat. Delek owns 84% of the company, and will own 74% if its partners exercise their option to buy stakes.
In the notice to the TASE, Rapac said that it would buy Delek's rights in the project in installments, based on milestones. The largest amount will be set on the basis of the power station's net capacity that is the basis for the financial closing. The price of the land set at its value in Delek's books. A total amount was not disclosed.
The natural gas-driven co-generation power station will have a 240-megawatt capacity.
Delek Group, through subsidiary Delek Infrastructures and Projects Ltd., is building four power stations, including a 150-megawatt plant at Kiryat Gat.
Delek Group's share price fell 1.8% today to NIS 755, giving a market cap of NIS 8.6 billion. Rapac's share price was unchanged at NIS 6.49, after rising over 4% following the announcement, giving a market cap of NIS 88 million.
Published by Globes [online], Israel business news - www.globes-online.com - on February 16, 2012
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