Israel Corp. (TASE: ILCO) chairman Idan Ofer told "Bloomberg" today that the company may dedicate its Chinese automobile venture exclusively to making electric cars within five years.
The $830 million partnership with Chery Automobile Co may generate savings by working with Project Better Place, another Israel Corp. unit that's planning a global network of battery-recharging stations, Ofer said. The venture, based in the Anhui Province, will initially build conventional sedans for the US and European markets, he said. Israel Corp last year invested $100 million in Shay Agassi's Project Better Place. Ofer said Israel Corp had plans to extend the project to the Palestinian Authority, adding that it was essential for businesses from Israel and the Arab world to cooperate.
Ofer also told "Bloomberg" he intends to boost Israel Corp.'s market cap to $20 billion by 2012. "The market perhaps doesn't understand what we're doing, but I'm not worried. Once they realize the strength of these investments and the tremendous growth potential of these investments, we'll see an increase in the value,'' he said. Israel Corp currently has a market cap of $9.3 billion, which means that Ofer is aiming to more than double it within four years.
IBI Investment House analyst Yuval Zehira told "Bloomberg" that Israel Corp's main challenge to get its latest project up and running. "The Chery venture and Better Place both have a lot of potential, but both are in their beginning stages," he said.
Israel Corp's share rose 2% today, largely as result of the 3% rise by its main subsidiary, Israel Chemicals Ltd. (TASE: ICL).
Published by Globes [online], Israel business news - www.globes-online.com - on May 21, 2008
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