Sources inform ''Globes'' that Noy Infrastructure Fund is in talks to acquire 10-15% of a target=new href=http://www.daliapower.darolite.com/>Dalia Power Energies Ltd., which is planning to build a private power station. The deal would be part of the financial closing for the power station, for which the company must provide $200 million in equity.
The 870-megawatt at Tzafit, between Kiryat Gat and Beit Shemesh, at an investment of $1 billion, making it Israel's largest private power station.
Noy Fund is in talks to buy shares in Dalia Power from Hiram Epsilon Ltd., whose owners include Union Bank of Israel (TASE: UNON) shareholder Yeshayahou Landau, a controlling partner in Delek's partner in Leviathan, Ratio Oil Exploration (1992) LP (TASE:RATI.L). If a deal is signed, Hiram Epsilon stake in Dalia Power would fall to 25-30% from its current 43.3%. Other Dalia Power shareholders are Energy Economy Ltd. (43.3%), and the Israel Infrastructure Fund (IIF) (20%). Noy Fund and IIF are already partners in Road 6 (the Cross-Israel Highway) franchisee Derech Eretz Highways Ltd.
Dalia Power can secure financing to build the power station only after signing a natural gas supply contract with the Tamar partners, which include Delek Group Ltd. (TASE: DLEKG), Noble Energy Inc. (NYSE: NBL), and Isramco Ltd. (Nasdaq: ISRL; TASE: ISRA.L). Under a letter of intent from January 2010, the company will buy up to 900 million cubic meters of gas for an estimated $1 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on November 30, 2011
© Copyright of Globes Publisher Itonut (1983) Ltd. 2011