Shikun & Binui Energy Sale to Generation Fund Approved

Shareholders of Shikun & Binui Energy have approved the sale of the company to the Generation Fund, finalizing a deal initially agreed upon in late July. The transaction, valued at approximately 4.5 billion shekels, required special shareholder approval due to the company's anticipated delisting from the stock exchange. The deal now awaits approval from the Israel Competition Authority, a common step for such acquisitions.

Four months prior, Shikun & Binui and Generation Fund signed a memorandum of understanding to acquire all shares of Shikun & Binui Energy through a reverse triangular merger. The initial base valuation was around 4.2 billion shekels, with potential to rise to 4.5 billion shekels based on performance milestones. Generation Fund was granted a period of exclusivity, during which Shikun & Binui could not negotiate with other parties. This exclusivity period was extended multiple times before the final agreement.

During the exclusivity period, Keystone Fund attempted to enter the bidding process. However, due to the existing exclusivity agreement, Shikun & Binui was prevented from formally considering Keystone's competing offer. Keystone, led by Navot Bar, had proposed approximately 4.35 billion shekels in a single cash payment, without any conditional components.