Israel Corp. has signed an agreement with Indian partner DS Construction Ltd to buy a unit of Globeleq International Ltd for $568 million.
JERUSALEM: Holding company Israel Corp. said on Sunday it had won a tender and signed an agreement with Indian partner DS Construction Ltd to buy a unit of Globeleq International Ltd for $568 million.
The Globeleq unit, Globeleq Americas Ltd, is located in Bermuda and holds several companies involved in the production and sale of electricity in Latin America and the Caribbean, Israel Corp. said in a statement to the Tel Aviv Stock Exchange.
Under the agreement, Israel Corp. and DS Construction will each hold a 50 per cent stake in the Globeleq unit.
In the event DS Construction does not manage to get approval from the Indian authorities for the deal by the end of the contract, Israel Corp. will buy the shares alone, and give DS the option to acquire the stake by September 2.
The deal is subject to approval by the regulatory authorities in Bermuda, and is expected to be completed by June 18, by which date the entire sum will be paid in cash.
Israel Corp. intends to use Globeleq Americas as a platform for expanding its activity in the generation and sale of electricity in Latin America and elsewhere.
The power stations controlled by Globeleq Americas in Latin America and the Caribbean have a total capacity of more than 2000 megawatts.
British power investment company Globeleq has sold parts of its global assets since announcing it would sell its worldwide operating power businesses earlier in the year.
In February, a unit of infrastructure developer Lanco Infratech Ltd and Jindal Steel & Power Ltd, acquired all of Bermuda-based Globeleq's Ltd's holding in Globeleq Singapore Pte Ltd.
Israel Corp's Tel Aviv-listed shares were up 4.6 per cent in afternoon trade, compared with gains of 0.4 per cent in the broader bourse.
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