Aluma Infrastructure Signs Deal for NIS 150 Million Investment in Alumenergy
Translated & summarized from Bizportal by baba
Aluma Infrastructure and its subsidiary Alumenergy have signed a non-binding deal with an institutional investor for a NIS 150 million investment, valuing Alumenergy at NIS 750 million. The deal includes an exit strategy within six years and potential additional compensation for Aluma. This new valuation is significantly higher than a previous August agreement, reflecting Alumenergy's expanded operations.
The story in 5 lines · by baba
- Aluma Infrastructure and Alumenergy signed a non-binding deal for a NIS 150 million investment.
- The investment values Alumenergy at NIS 750 million post-money for a 20% stake.
- The deal includes a six-year timeframe for selling Alumenergy or an IPO.
- The investor gains a put option if no exit occurs within six years.
- The new valuation is significantly higher than a previous NIS 80 million deal.
Aluma Infrastructure and its subsidiary Alumenergy have signed a non-binding memorandum of understanding with an institutional entity for an investment of approximately NIS 150 million. This investment will grant the entity a 20% stake in Alumenergy on a fully diluted basis, valuing the company at around NIS 750 million post-money. The investment is planned to occur in two stages.
Under the agreement, both parties will work towards selling Alumenergy or taking it public within six years. If no exit occurs within this timeframe, the institutional investor will receive a put option. This option will allow them to receive payment in cash or Aluma Infrastructure shares, at the fund's discretion. Additionally, Aluma Infrastructure may be entitled to further compensation based on Alumenergy's performance.
This new offer represents a significantly higher valuation for Alumenergy compared to a previous non-binding agreement signed in August with Discount Capital. That deal involved an investment of approximately NIS 80 million for about 16.5% of Alumenergy, valuing the company at roughly NIS 406 million pre-money. Since the August agreement, Aluma has expanded its operations, including through an agreement to acquire OPC Distributed.
It is important to note that the current agreement is a non-binding memorandum of understanding, and there is no certainty that a definitive agreement will be signed or that the transaction will be completed.