Israel Corporation sells stake in Peruvian power generator Edegel

Israel Corporation said on Thursday last week  it was selling its 21.1 % stake in Peruvian power generator Edegel to Chile-based energy group Enersis SA.

Enersis, which is controlled by Spain's Endesa, said on Wednesday it would buy the stake for $413 million, increasing its holding in Edegel to 58.6 %.

Israel Corporation reported it will book a gain of $88 million in the sale process.

Under the agreement, IC Power, a subsidiary of Israel Corp, will sell a 39 % stake in Generandes Peru, which in turn owns 54.2 % of Edegel.

Edegel is the largest private electric power generation company in Peru. It owns and operates power plants with 1,657 megawatts capacity in Peru. 

Edegel currently has a market cap of $2 billion on the Lima Stock Exchange.