Market sources believe that Clal Insurance Enterprises Holdings Ltd. (TASE: CLIS) has been holding advanced talks to buy the entire stake (100%) of Delek Group Ltd. (TASE: DLEKG) in the power plant near Ashkelon's desalination facility, for NIS 200 million. Delek, controlled by Yitzhak Tshuva and managed by CEO Asaf Bartfeld, announced that negotiations have indeed been underway.
According to Delek's announcement, the talks are in an "advanced" stage and "if and as far as an obligatory agreement is signed, the company will report." The Ashkelon station produces 87mW of electricity, with most of its output designated for the nearby desalination facility and the rest sold to private customers and/or the Israel Electric Company.
The private power station in Ashkelon started operating in January 2008 and was set to supply power to the desalination facility for 22.5 years (until June 2027). It has permanent licenses to produce and supply electricity. According to Delek's 2015 statements, "the overall revenue of Delek Ashkelon in 2014 and 2015 was about NIS 227 million and 198 million, accordingly."
Delek owns another private power plant in Soreq, which began operating earlier this month, after a delay of more than a year. This station will provide 140mW half to the nearby desalination facility and the rest to plants in the area.
Published by Globes [online], Israel business news - www.globes-online.com - on July 17, 2016
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