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Elco is putting its controlling stake in Supergas Power up for sale as it seeks to reduce debt and strengthen its balance sheet, Calcalist reported Wednesday.
The Israeli group owns about 61% of Supergas and has selected Phoenix Underwriting to advise on a structured sale process involving potential buyers, according to the report.
The reported process does not mean a transaction has been completed. No buyer or agreed sale price was identified in the report.
For Supergas investors, the move raises the prospect of a change in the company’s controlling shareholder. For its household and business customers, the report concerns ownership rather than an announced change to gas or electricity service.
A debt-reduction move
Calcalist described the planned sale as part of Elco’s effort to reduce financial leverage by selling holdings. The amount ultimately raised would depend on a transaction being agreed and completed.
Supergas operates in cooking-gas marketing and supply and in electricity supply as Israel’s power market opens to competition. Its traditional liquefied petroleum gas business serves both private customers and businesses.
The company has expanded its electricity activity in recent years alongside that gas business, according to Calcalist. Elco bought Supergas from Azrieli Group in 2019, and Supergas listed on the Tel Aviv Stock Exchange in 2020.
The next step described in the report is a sale process, not a completed transfer of control. Any eventual agreement would need to set the buyer, consideration and conditions for closing.
JBizNews Desk | Tel Aviv
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