The Israel Corporation has completed the sale of its 21% stake in the Peruvian electricity utility Edegel for $413 million to Endesa, Spain’s largest electricity provider.
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The Israel Corporation, which is controlled by Idan Ofer, acquired its interest in Edegel in two phases for $268 million via its IC Power energy subsidiary. Over the years, it was paid $105 million in dividends by Edegel, and the Israel Corporation reported that it expects a $88 million capital gain on the sale of its stake in Edegel, Peru’s largest electricity utility. The sale proceeds will help IC Power fund a $900 million investment in a Peruvian hydroelectric plant at Cerro Del Aguila that is slated for completion in 2016.
Shares in Edegel, which produces power at thermal and hydroelectric power plants, are traded on the Lima stock exchange at a market cap of $2 billion.