(BIZ) Israel Corp Unit To Raise Stake In Peru Power Company

"According to Israel Corp., Edegel is the largest power producer in Peru.

Israel Corporation (TASE: ILCO) holding Inkia Energy Ltd. will raise its stake in Edegel from 14% to about 25%, in a three stage process.



According to Israel Corp., Edegel is the largest power producer in Peru, with generating capacity of 1,700 megawatts. Edegel has seven hydroelectric power plants, and seven thermoelectric plants.

Edegel is a public company, traded on the Lima stock exchange.

The first step is a purchase offer which regulators in Peru limited to 3.47% of the public's shares. The precise company valuation will be set by regulators. If the offer is accepted in full, at the current share prices, the offer will be worth $47 million.

A second phase of the transaction involves buying 6.4% of Edegel shares from a third party, for $50 million. This represents using a right of refusal that Inkia has.

Lastly, the company has also offered another Edegel shareholder buy its entire 0.4% stake in Edegel." (source)