IDB unit Clal Industries drops solar plant bid plans

Clal Industries subsidiary Clal Energy was going to partner with Spain's Abengoa Bioenergy in the tender.

Clal Industries and Investments Ltd. (TASE: CII), a unit of IDB Holding Corp. Ltd. (TASE:IDBH), controlled by chairman Nochi Dankner, will not participate in the tender to build the solar energy plants at Ashelim in the Negev.

Clal Industries subsidiary Clal Energy Ltd. was going to partner with with Spain's Abengoa Bioenergy SA (IBEX:ABG) in a joint venture. However, it has cancelled the agreement to set up the joint venture, which would have bid in the tenders.

In a notice to the TASE today, Clal Industries said, "The decision was taken in part because of the commercial risks from the tender's terms, and in view of the conditions in global capital markets."

The tender to build and operate thermosolar and photovoltaic plants at Ashelim received a boost in February when the Public Utilities Authorities (Electricity) granted a license for the plants.

Clal Industries' share price fell 1.6% in early trading today to NIS 23.23, giving a market cap of NIS 3.71 billion.

Published by Globes [online], Israel business news - www.globes-online.com - on May 20, 2010

© Copyright of Globes Publisher Itonut (1983) Ltd. 2010

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