Rapac Energy Buys Majority Stake in Orot Yitzhak Power Station
Translated & summarized from TheMarker by baba
Rapac Energy is acquiring a 50.1% stake in the planned Orot Yitzhak power station for NIS 550-730 million from Tzachi Abu's Ari Real Estate and Jacky Ben Zaken's private company. The deal values the project at NIS 1.1-1.46 billion and is expected to yield significant profits for the sellers. The power station's development has advanced through the National Infrastructure Committee's planning process, with a final capacity decision pending. Rapac Energy, a recent IPO company, is expanding its energy portfolio with this acquisition.
The story in 6 lines · by baba
- Rapac Energy will buy 50.1% of Orot Yitzhak power station for NIS 550-730 million.
- The deal values the planned power station at NIS 1.1-1.46 billion.
- Tzachi Abu's Ari Real Estate and Jacky Ben Zaken's company are selling their stakes.
- The National Infrastructure Committee has advanced planning for the power station.
- Ari Real Estate and Ben Zaken purchased the land for NIS 362 million in September 2025.
- Rapac Energy recently raised NIS 420 million in its IPO.
Tzachi Abu and Jacky Ben Zaken are set to profit significantly from their stake in the planned Orot Yitzhak power station in the Menashe Regional Council. Ari Real Estate, controlled by Abu and holding 60% of the project, and a private company owned by Ben Zaken, holding 40%, have signed an agreement with Rapac Energy. Under the deal, Rapac Energy will acquire a 50.1% controlling interest in the power station for approximately NIS 550-730 million, based on a valuation of NIS 1.1-1.46 billion. This valuation is contingent on the station's performance and construction progress, which could lead to an expanded capacity.
Following the transaction, Rapac Energy will own 50.1% of the station, with Ari Real Estate holding 30% and Ben Zaken's company retaining about 20%. This agreement follows earlier discussions between Ari Real Estate, Ben Zaken, and other entities, including Shamir Energy, about bringing in a partner. Ari Real Estate anticipates a profit of around NIS 330 million if the deal closes at the lower valuation, potentially increasing by another NIS 100 million if the higher valuation is realized.
Earlier this year, Ari Real Estate reported that the National Infrastructure Committee (VATAL) had advanced plans for the Orot Yitzhak power station, setting permit conditions for access roads and power lines. This move into the statutory planning process has increased the project's certainty. In September 2025, Ari Real Estate and Ben Zaken won a tender from Israel Land Authority to purchase 73.6 dunams for the power station for NIS 362 million.
Ari Real Estate estimates the site can accommodate a power station of up to 1,700 megawatts, with a potential valuation of NIS 1.5 billion after zoning changes. VATAL is expected to decide whether the station will have a capacity of 850 megawatts or 1,700 megawatts. Regional councils, which oppose the construction, prefer a single high-capacity station over multiple smaller ones on adjacent land.
Rapac Energy, led by Itay Hagai, focuses on developing, constructing, and operating renewable energy and natural gas power plants. Established in 2021 as the energy arm of Rapac Group, the company recently raised NIS 420 million in its initial public offering. Since its IPO, Rapac Energy's stock has risen approximately 11%, valuing the company at about NIS 1.9 billion. Rapac Energy also holds stakes in conventional power stations like Alon Tavor and Reindor, and is active in the renewable energy sector.
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