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).
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.