The Ticker: IC Power to Buy Guatemalan Electricity Business

IDB gets more time to offload Clal Insurance; Bank Leumi proposes chairman for Jerusalem Economy Corporation.

Itzik Ben-Malki

 IC Power to buy Guatemalan electricity business 

IC Power, the closely held energy unit of Kenon Holdings, said Thursday it had agreed to acquire a Guatemalan electric power business from the private equity fund Actis as it expands in Latin America. Kenon said IC would pay about $300 million for Energuate, which controls two power-distribution business and two related companies, and take on $289 million of the company’s debt. Energuate companies serve about 1.6 million households, or about 60% of the Guatemalan market, and sold 2,160 gigawatt hours of energy, representing 35% of the total energy consumed in Guatemala in 2014. IC, which has operations in Israel, Peru and Central America and filed in August for an initial public offering, said it would finance the acquisition with cash on hand and a $120 million loan. Kenon shares ended down 1.2% at 39.50 shekels ($10.15). (Yoram Gabison)

IDB gets five more days to wind up Clal sale
IDB Development Company said Thursday it had received a five-day extension from regulators on the December 31 deadline to reach an agreement selling control of Clal Insurance. IDB said it was still in talks to sell 55% of Israel’s second-biggest insurer to Chinese company Microlink for 2.48 billion shekels ($640 million), but no final agreement had been reached. It now has until Tuesday to finalize an agreement, or Dorit Salinger, the treasury’s commissioner of capital markets, insurance and savings, will force IDB to sell the stake at a lower valuation via a public offering. In addition, IBD said Bank Hapoalim had informed it that it would exercise its option to sell its 9.5% Clal stake to Microlink. The bank also noted it had a right to veto the deal under the terms of the 1998 agreement in which it bought the stake. IDB shares rose 0.4% to close at 1.70 shekels. (Michael Rochvarger and Assa Sasson)

Leumi will propose Aharon Fogel as JEC chairman
Bank Leumi will propose appointing Aharon Fogel as the next chairman of the embattled property company Jerusalem Economy Corporation after tycoon Eliezer Fishman’s candidate stepped down after one day on the job last week. Leumi, which holds Fishman’s 40% stake in JEC as collateral against unpaid debt, has been fighting with the tycoon over control of the heavily indebted property company. The bank pressured Arad to resign and now the two sides have agreed on Fogel, a former chairman of insurer Migdal and Finance Ministry director general with no experience in real estate. Leumi has so far failed to find a buyer for the JEC shares and has left them in Fishman’s control to avoid JEC’s creditors turning to the bank. JEC shares climbed 4.1% to finish at 5.75 shekels ($1.48). (Michael Rochvarger)