Israel’s Kenon Holdings (KEN.N) (KEN.TA) said on Sunday it has agreed to sell IC Power’s Latin American and Caribbean businesses to infrastructure investment manager I Squared Capital for about $1.2 billion.
In January Kenon filed for an initial public offering of IC Power, but dropped its plans the following month citing market conditions.
“The sale is part of Kenon’s strategy to provide its shareholders with direct access to its businesses, including through monetization of its businesses,” the company said.
The deal, which is expected to close in the next several months, is only for operations owned by IC Power’s subsidiary Inkia Energy in Latin America and the Caribbean, and does not include its OPC Energy Ltd operations in Israel.
As part of the transaction, I Squared Capital will assume Inkia’s $450 million of bonds, which were issued in November 2017, Kenon said.
Bank of America Merrill Lynch acted as financial advisor to Kenon, whose stock price at noon was up more than 6 percent in Tel Aviv.
Kenon is arranging a meeting at which shareholders will be asked to ratify the sale and subject to the completion of the sale, approve a capital reduction to enable Kenon to distribute a portion of the transaction proceeds to its shareholders.