Israel Corporation (TASE: ILCO) is in talks to sell its 21.1% stake in Edegel SAA (Lima: EDE), Peru's largest private power producer. The market value of the stake is $430 million, and sources close to the company said that it is asking $500 million. Israel Corp. holds Edegel through IC Power Ltd.
The move comes amid cash flow problems at Israel Corp.'s subsidiary, Oil Refineries Ltd. (TASE:ORL), and Israel Corp.'s plan to spin off some of its holdings to a new company. IC Power, Chinese venture Qoros Auto Company Ltd., Zim Integrated Shipping Services Ltd., IC Green Energy Ltd., and Tower Semiconductor Ltd. (Nasdaq: TSEM; TASE: TSEM) will be transferred to a new company, while Israel Corp. will keep Oil Refineries and Israel Chemicals Ltd. (TASE: ICL).
Israel Corp. said in response, "The company, as a holding company, from time to time examines the sale of mature assets as part of its business."
Edegel has 1,668 megawatts electricity production capacity. It owns seven hydroelectric plants ranging in size from 30 megawatts to 250 megawatts, and seven combined cycle and open cycle power plants.
Edegel is a public company traded on the Lima Stock Exchange. Its controlling shareholder is Endesa Chile SA (a subsidiary of Spain's Endesa SA), which owns 61% of Generandes Peru SA (Lima: GEN), which owns 54% of Edegel. Endesa also directly owns 29% of Edegel.
Published by Globes [online], Israel business news - www.globes-online.com - on October 29, 2013
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