Power Plant Stake Sold for Over Half a Billion Shekels
Translated & summarized from TheMarker by baba
Tzachi Abu and Jackie Ben Zaken's companies are selling a 50.1% stake in the planned Orot Yitzhak power station to Rafec Energy for 550-730 million shekels. The deal values the project between 1.1 and 1.46 billion shekels. Ari Real Estate expects a profit of around 330 million shekels from the sale. The National Infrastructure Committee recently advanced the station's planning process.
The story in 5 lines · by baba
- Rafec Energy will buy 50.1% of Orot Yitzhak power station for 550-730 million shekels.
- The deal values the planned power station between 1.1 and 1.46 billion shekels.
- Tzachi Abu's Ari Real Estate expects to profit approximately 330 million shekels.
- Jackie Ben Zaken's company will retain a 20% stake in the project.
- The National Infrastructure Committee advanced the station's planning process three months ago.
Tzachi Abu and Jackie Ben Zaken are set to profit significantly from their stake in the planned Orot Yitzhak power station, located in the Menashe Regional Council. Ari Real Estate, controlled by Abu and holding 60% of the station, along with a private company owned by Ben Zaken holding 40%, has signed an agreement with Rafec Energy. Under the deal, Rafec Energy will purchase 50.1% of the equity rights in the power station from Ari Real Estate and Ben Zaken's company. The transaction values the station at 1.1 to 1.46 billion shekels, meaning Rafec Energy will pay approximately 550 to 730 million shekels. This payment is contingent on the station's performance and construction progress, with potential for an expanded scope beyond initial plans.
Following the deal's completion, Rafec Energy will own 50.1% of the station, slated for construction in the coming years. Ari Real Estate will retain 30%, and Ben Zaken will hold about 20%. This agreement follows previous discussions Ari Real Estate and Ben Zaken held with other entities, including Shamir Energy, about bringing in a partner.
The anticipated profit for Ari Real Estate, assuming the deal closes at the lower valuation of 1.1 billion shekels, is approximately 330 million shekels. If the final price reflects the higher valuation of 1.46 billion shekels, Ari Real Estate's profit will increase by an additional 100 million shekels.
About three months ago, Ari Real Estate reported that the National Infrastructure Committee (VATAL) had decided to publish plans for the Orot Yitzhak power station's construction. This decision also set the permit conditions for the access road, electricity corridor, and pressure reduction facility locations, effectively advancing the station's statutory planning process and increasing its planning certainty.
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