Ofer Brothers subsidiary Israel Corp. (TASE: ILCO) is continuing its efforts to expand internationally. The company has announced its participation in a tender to acquire a power company that that operates in Latin America and the Caribbean. Israel Corp. is also negotiating to participate in a Chinese car manufacturing venture, but has abandoned for now a plan to acquire a European fuel company.
Israel Corp. said today that it has set up a joint venture with a foreign company in order to bid for a power company that operates power stations in emerging markets in Latin America, Asia, and Africa. The partners will own the joint venture in equal shares. Israel Corp. said that was not the only bidder in the tender, and added that when the tender is closed, the winner would have the right to negotiate for the acquisition of the activity. Israel Corp. did not disclose the size of the tender, but said that the investment would be substantial.
The subject of the tender is reportedly Globeleq, registered in Bermuda, and which operates power stations in emerging markets in Latin America, Asia, and Africa. Globeleq says that its assets are valued at over $1.5 billion, with investments in 19 power companies in 16 countries with a total of more than 4,500 megawatts (MW) in generation capacity, and one national power distribution company. It has more than 2,000 employees and posted $500 million revenue in 2005. Globeleq is owned by private equity fund CDC Group plc.
Published by Globes [online], Israel business news - www.globes.co.il - on May 14, 2007
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