Keystone Signals Intent to Acquire Shikun & Binui Energy with New 2 Billion Shekel Credit Line

Keystone Infrastructure Fund, managed by Navot Bar, is signaling its strong intent to acquire Shikun & Binui's public subsidiary, Shikun & Binui Energy. Keystone signed a term sheet with a financial institution to secure a credit facility of up to 2 billion shekels for its energy arm, Keystone Power. This credit line is expected to support the acquisition if completed by Keystone.

Currently, infrastructure fund Generation Capital is also competing to purchase Shikun & Binui Energy. Generation Capital holds an exclusivity agreement (no-shop clause) with Shikun & Binui, which is set to expire soon. Once this period ends, Shikun & Binui will need to decide between the competing offers.

Keystone Power consolidates all of Keystone's energy activities and is already a major private energy platform in Israel. It owns power stations at Ramat Hovav, Hagit East, and IPM, and holds a partnership in the under-construction Sorek power plant. Upon completion of Sorek, Keystone Power’s total generation capacity will exceed 3,200 megawatts, about 14% of Israel’s natural gas electricity production capacity.

The approval of the credit terms and signing of the term sheet mark a significant step in Keystone’s preparation to finance the acquisition. These moves complement other ongoing efforts by Keystone to secure the purchase of Shikun & Binui Energy.