EZ Energy Ltd. (TASE:EZ) unit EZ Energy USA Inc. has obtained an investment of $10 million from Investec Bank (UK) Ltd. and a private investor. EZ Energy USA also signed a contract to buy a group of gas stations in the US.
Investec Bank (UK) and the private investor will initially invest $7 million in EZ Energy USA for a 27% stake in the company, and later invest an additional $3 million for a 7.6% stake. The first investment was made at a company value of $26 million for EZ Energy USA, after money, and the second investment at a company value of $29 million, after money.
EZ Energy rose 9.5% in early trading on the TASE to NIS 0.046, giving a market cap of NIS 42 million.
EZ Energy USA bought a group of 42 gas stations and four lots in the US for $32.6 million, plus inventory. When the deal is closed, the company will own 93 gas stations and convenience stores. The gas stations sell 160 million gallons of gasoline a year and the turnover of the convenience stores is $68 million a year.
In September, EZ Energy USA signed a non-binding memorandum of understanding (MOU) with investors for a three-year loan, convertible into equity, at a company value of $19 million.
Published by Globes [online], Israel business news - www.globes-online.com - on December 17, 2008
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