Losers in the tender for PNOC Energy Development might want Ormat instead.
Clal Finance Batucha analyst Yuval Ben-Ze'ev says that if Africa-Israel Investments Ltd. (TASE:AFIL; Pink Sheets:AFIVY.PK) loses the privatization tender for Philippine geothermal company PNOC Energy Development Corp. (Manila:EDC), it might decide to make a bid for Ormat Industries Ltd. (TASE: ORMT).
Ben-Ze'ev says that other failed bidders for PNOC Energy Development might also become interested in Ormat. They include Japanese corporations Sumitomo Group, and Marubeni Corporation (TSE:80020), and Iceland’s Reykjavik Energy Invest.
The Philippine government is selling its 60% stake in PNOC Energy Development, which has a market cap of $2.4 billion. Ben-Ze'ev recommends closely monitoring developments in the tender, adding that Africa-Israel, controlled by Lev Leviev, has already said that it wants to invest in energy.
Published by Globes [online], Israel business news - www.globes.co.il - on October 21, 2007
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