Israel Corp. will record a capital gain of $88 million on the sale of 21.1% of Edegal.
Israel Corporation (TASE: ILCO) unit IC Power has sold its 21.1% stake in Peruvian electricity company Edegel SA for $413 million. The sell contains a capital gain of $88 million for Israel Corp.
Israel Corp. acquired its stake in Edegel in two stages. In 2007, the assets of Inkia were acquired representing a 14.4% stake when Edehel had a stock market cap of $1.5 billion. In 2010 a further 6.8% was acquired when the market cap was $780 million. In other words the shares were bought when the company was worth (on average) $1.27 billion.
Over the years Israel Corp. has received dividends from Edegel worth $105 million.
Edegel is a unit of Spanish energy company Endesa, which is itself a subsidiary of Italian energy giant ENEL. Edegel currently has a market cap of $2 billion on the Lima Stock Exchange.
Published by Globes [online], Israel business news – www.globes-online.com