Elran Investments Ltd. (TASE: ELIN) subsidiary Elran (DD) Infrastructures Ltd. has completed the sale of its 25% stake in VID Desalination Company Ltd. and its 10% stake in Adom (Desalination Ashkelon) Ltd., which own and operate the Ashkelon desalination facility, to Veolia Water SA for NIS 94.1 million. Elran Investments owns 45.4% of Elran Infrastructures. The sale includes NIS 54.3 million owners loan and notes that Elran Investments made to VID.
Elran Infrastructures expects to report a pretax capital gain of NIS 18 million on the sale, of which NIS 8 million will accrue to Elran Investments.
The Ashkelon seawater reverse osmosis desalination facility produces 100 million cubic meters of water a year. It is one of the largest facilities of its kind in the world, and the first in Israel. It was built by VID, a consortium that comprises Elran, Veolia Water, and IDE Technologies Ltd., at a cost of NIS 1 billion under a BOT (build, operate, transfer) contract, and came on line in 2005.
Adom is owned by Delek Group Ltd. (TASE: DLEKG) and Israel Chemicals Ltd. (TASE: ICL), which has a contract to operate and maintain the Ashkelon desalination facility.
Published by Globes [online], Israel business news - www.globes-online.com - on May 15, 2008