Kenon Holdings Ltd., controlled by Idan Ofer, is acquiring Guatemalan electrical utility company Energuate for $299.5 million. Kenon unit IC Power is buying Energuate from private equity firm Actis LLP’s unit Deorsa-Deocsa Holdings Ltd.
Energuate owns two electricity distribution companies in Guatemala that provide services for 1.6 million households in Guatemala (60% of Guatemala’s distribution clients). Energuate operates 33, 000 km of distribution lines within Guatemala(representing 94% Guatemala’s distribution lines).
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at [email protected].
Thank you.
In 2014, Energuate sold 2, 160 GWh of energy, representing 35% of the total energy consumed in Guatemala in 2014. The Energuate business includes two smaller companies: Comercializadora Mayorista de Electricidad, S.A., an electricity trading company that provides services to large customers and Redes Electricas de Centroamerica, S.A., a transmission company that owns and operates 31 km of transmission lines and eight sub-stations.
IC Power has agreed to pay $299.5 million for the purchase of the Energuate (based on its March 31, 2015 financial results), and IC Power expects to assume Energuate’s financial debt of $289 million, as of November 30, 2015.
IC Power expects to fund this payment through cash on hand and a new $120 million loan facility.
IC Power anticipates that the acquisition will be closed during January 2016.
