The Noy Infrastructures Fund will own up to 20% of the OPC Rotem independent power station owned by Israel Corporation (TASE: ILCO) and Veolia Environnment SA under construction at Mishor Rotem. The Noy Fund has signed an agreement to invest up to NIS 250 million for 25% of Israel Corp. subsidiary IC Power Israel Ltd., which owns 80% of OPC Rotem Ltd. Veolia's energy subsidiary Dalkia SA owns the rest of OPC Rotem.
OPC Rotem previously won a government tender for the supply of electricity. The company recently completed agreements for the sale of all of the future production capacity to Israel Corp. companies and other large business, including Azrieli Group Ltd. (TASE: AZRG) malls. The Noy Fund's investment reflects a company value of NIS 1.2 billion for OPC Rotem, which will be Israel's first independent power station. The 440-megawatt power station is due to come on line during the first quarter of 2013.
Noy Fund chairman Pinchas Cohen said that the deal was undergoing due diligence, after which an agreement would be signed, probably toward December.
The Noy Fund, which has raised NIS 780 million to date, may invest up to 20% of its capital in a single project. It will therefore set up a new special purpose partnership, similar to its partnerships for its investment in the Road 6 (Cross-Israel Highway) franchisee.
The Noy Fund, which invests in infrastructures and energy projects, began operating in May 2011. To date, it has invested in Road 6 franchisee Derech Eretz Highways Ltd., solar energy companies Arava Power Company Ltd. and Global Sun Israel Ltd., Haifa's Metronit public transport project controlled by Dan Public Transportation Company Ltd., and, most recently, in the IDF Training Base City in the Negev.
Published by Globes [online], Israel business news - www.globes-online.com - on October 2, 2012
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