Elco Group Seeks Buyer for Supergas Energy Control
Translated & summarized from Calcalist by baba
Elco Group is selling its controlling stake in Supergas Energy to reduce its financial leverage. The company, which owns 61% of Supergas, has hired Harel to manage the sale. Supergas operates in the cooking gas and electricity supply markets, with revenues increasing in the first half of 2026. Elco acquired Supergas in 2019 for approximately NIS 770 million.
The story in 5 lines · by baba
- Elco Group is selling its controlling stake in Supergas Energy to reduce financial leverage.
- Elco owns 61% of Supergas and has appointed Harel to manage the sale process.
- Supergas operates in the cooking gas and electricity supply sectors.
- First-half 2026 revenues for Supergas reached approximately NIS 493 million.
- Elco acquired Supergas in 2019 for about NIS 770 million.
Elco Group is preparing to sell its controlling stake in Supergas Energy, one of Israel's long-standing energy companies. Elco, which owns 61% of Supergas, has appointed Harel Insurance Investments and Financial Services Ltd. (Harel) to manage the sale process and identify potential buyers. This move is part of Elco's strategy to reduce its financial leverage and strengthen its balance sheet by divesting assets.
Supergas, led by CEO Daniel Sapir, operates in two main sectors: marketing and supplying cooking gas (LPG) to residential and business customers, and electricity supply as the Israeli electricity market opens to competition. The company has expanded its electricity operations in recent years while maintaining its traditional home gas market.
In the first half of 2026, Supergas reported revenues of approximately NIS 493 million, a significant increase from NIS 391 million in the same period last year. EBITDA for the half-year was around NIS 36.5 million, consistent with the previous year. The company's LPG business remains its primary profit driver, with first-half revenues reaching NIS 265 million and sector EBITDA at NIS 41 million. The electricity supply segment saw a 47% revenue increase to NIS 228 million, though it recorded a negative EBITDA of approximately NIS 1 million.
Supergas recently sold its natural gas and cogeneration operations for about NIS 406 million, a transaction expected to reduce its net financial debt by NIS 292 million. Elco's primary motivation for selling its controlling interest in Supergas is financial, aiming to raise hundreds of millions of shekels to lower the group's overall leverage. Supergas was acquired by Elco from Azrieli Group in 2019 for approximately NIS 770 million and went public on the Tel Aviv Stock Exchange in 2020.
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