Nofar Energy Sells Core Solar Assets for $165 Million

Nofar Energy, led by Ofer Yanai, is undertaking a significant strategic shift by selling its core historical business operations, which focus on solar energy systems on rooftops and energy storage facilities. The portfolio, largely concentrated in partnerships with numerous kibbutzim across Israel, is being offered for NIS 600 million (approximately $165 million).

The primary motivation behind this move appears to be a strong desire by the company to substantially reduce its financial leverage and generate immediate cash for future expansion. The proposed sale structure includes NIS 300 million in cash payment from potential buyers, with the remaining NIS 300 million to be provided as a seller's loan at a 6% interest rate, payable after one year.

The assets up for sale encompass approximately 1,550 facilities, including a solar generation capacity of 346 megawatts and an energy storage capacity of 113 megawatt-hours. These operations are currently managed under the subsidiary "Nofar Israel."

This decision to divest from its foundational business has garnered considerable attention in the energy market, as these assets hold significant historical value. However, the move aligns with a broader strategy anticipating the upcoming stock exchange listing of Nofar Israel. Concurrently, Nofar Energy has recently made substantial investments, including acquiring stakes in the "Raindeer" power station and the "Highlight" company. Alongside recent capital raises from major institutional investors like Meitav and Clal Insurance, Nofar appears to be refreshing its asset portfolio, freeing up capital from its established operations, and redirecting its focus towards large-scale infrastructure projects both domestically and internationally.