Israel's Kenon agrees to sell IC Power's Latam business for $1.2 bln (updated)
26/11/2017 10:24
(Adds details, share reaction)
JERUSALEM, Nov 26 (Reuters) - Israel's Kenon Holdings
KEN.N KEN.TA said on Sunday it has agreed to sell IC Power's
Latin American and Caribbean businesses to infrastructure
investment manager I Squared Capital for about $1.2 billion.
In January Kenon filed for an initial public offering of IC
Power, but dropped its plans the following month citing market
conditions.
"The sale is part of Kenon's strategy to provide its
shareholders with direct access to its businesses, including
through monetization of its businesses," the company said.
The deal, which is expected to close in the next several
months, is only for operations owned by IC Power's subsidiary
Inkia Energy in Latin America and the Caribbean, and does not
include its OPC Energy Ltd operations in Israel.
As part of the transaction, I Squared Capital will assume
Inkia's $450 million of bonds, which were issued in November
2017, Kenon said.
Bank of America Merrill Lynch acted as financial advisor to
Kenon, whose stock price at noon was up more than 6 percent in
Tel Aviv.
Kenon is arranging a meeting at which shareholders will be
asked to ratify the sale and subject to the completion of the
sale, approve a capital reduction to enable Kenon to distribute
a portion of the transaction proceeds to its shareholders.
(Reporting by Ari Rabinovitch, Editing by Tova Cohen)
((ari.rabinovitch@thomsonreuters.com; +972-2-632-2202; Reuters
Messaging: ari.rabinovitch@thomsonreuters.com@reuters.net))
Keywords: KENON HOLDINGS IC POWER/