Shareholders Approve Sale of Shikun & Binui Energy to Generation Fund

Shareholders of Shikun & Binui Energy overwhelmingly approved the sale of the company to the Generation Fund on Monday evening. A staggering 99.99% of attending shareholders and 95.42% of all shareholders voted in favor of the deal. Generation, managed by Yossi Singer and Erez Balsha, signed the agreement in late July to acquire Shikun & Binui Energy for NIS 4.45 billion. The transaction involves the purchase of all company shares and its delisting from the stock exchange, necessitating shareholder approval.

Further approvals are required from the Israel Electric Corporation and the Israel Competition Authority. Should the deal falter due to conditions imposed by these regulators, Generation will be obligated to pay Shikun & Binui, the controlling shareholder of Shikun & Binui Energy, a penalty of NIS 300 million. Shareholders also approved, by a large majority, bonuses totaling NIS 5 million for executives at Shikun & Binui Energy, including a one-time retention bonus for CEO Yuval Skornik.

Shikun & Binui Energy is currently trading at a market value of NIS 3.95 billion, below the transaction price. This discrepancy is likely due to the pending regulatory approvals and speculation that Generation may be compelled to divest some of Shikun & Binui Energy's assets.