US gas station and convenience store operator EZ Energy Ltd. (TASE:EZ) today notified the Tel Aviv Stock Exchange (TASE) that Investec Bank (UK) Ltd. (LSE: INVP) and a private foreign investor have completed the second tranche of their investment in subsidiary EZ Energy USA Inc. The $3 million investment boosted Investec and the private investor's stake in EZ Energy USA by 7.6% to 34%. The investment was made at a company value of $29 million, after money.
The first tranche of the investment was made in December 2008, when Investec and the private investor invested $7 million in EZ Energy USA for a 27% stake.
Investec and the private investor have the right to appoint two directors to EZ Energy USA's board. EZ Energy USA's management will continue day-to-day operations.
EZ Energy chairman Eli Zahavi said, "The financing from Investec, obtained in these challenging times, is a milestone for the company, strengthens it, and opens new opportunities for implementing our work plan to acquire gas stations and convenience stores in the US."
EZ Energy's share rose 1.6% by midday today to NIS 0.062, giving a market cap of NIS 61.2 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 17, 2009
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