Israel Corp to post $88 mln gain from sale of Edegel stake
TEL AVIV May 1 (Reuters) - Conglomerate Israel Corp said on Thursday it will book a gain of $88 million from the sale of its 21.1 percent 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 percent .
Under the agreement, a unit of Israel Corp subsidiary IC Power will sell a 39 percent holding in Generandes Peru, which in turn owns 54.2 percent of Edegel.
Edegel owns and operates power plants with 1,657 megawatts capacity in Peru, Israel Corp said.
IC Power has invested over $2 billion in recent years, mainly in power generating projects in Latin America.
Israel Corp has said it plans to spin off some of its assets into a new, listed company in a bid to boost the value of its core businesses and attract a broader range of investors. IC Power would be one of the assets held by the new company. (Reporting by Tova Cohen, Editing by Ari Rabinovitch)
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