Ofer Yanai Negotiates Phoenix Stake Buyout in Raindear Power Project Valued at NIS 1.8 Billion
Ofer Yanai, through his company Nofar Energy, is in advanced talks to acquire Phoenix's entire 39.5% stake in the Raindear natural gas power plant project for approximately NIS 700 million, valuing the project at NIS 1.8 billion. Raindear, planned in central Israel's southern Sharon region, is designed to generate up to 900 megawatts and is nearing financial closure after securing most required permits. This acquisition would reposition Yanai in Israel's electricity production market.
Four months ago, Yanai sold his share in the Dorad power plant to Amos Luzon amid a separation agreement following Nofar Energy's acquisition of renewable energy company Alomay Capital, which held a significant stake in Dorad. The deal reflected a valuation of NIS 4.4 billion for Dorad. Concurrently, PowerGen, the energy arm of Generation Capital, is negotiating a swap deal with Rafek Energy to increase its Raindear stake from 27.5% to 52.5%, while divesting its entire 16.7% holding in the Alon Tavor MRC power station. This swap aims to streamline asset ownership and facilitate regulatory approvals for Generation Capital's planned NIS 4.5 billion acquisition of Shikun & Binui Energy.
If both deals conclude, PowerGen will control 52.5% of Raindear, Nofar Energy 39.5%, and private investors will hold the remaining 8%. The transactions are expected to reduce cross-ownership among power producers and intensify competition between Raindear and the nearby Kesem power station, partly owned by Mivtach Shamir.
Nofar Energy recently signed a non-binding memorandum with Meitav Investment House for a NIS 200 million investment, valuing its subsidiary Nofar Israel at NIS 2.3 billion post-money, a 30% increase since earlier investments this year. Since Yanai became Nofar's CEO last September, the company's stock has surged 113%, reaching a market cap of NIS 8.4 billion. Yanai's compensation package, approved in November, includes restricted shares worth up to NIS 760 million if Nofar's market value hits NIS 16 billion by November 2028, a target Yanai is already halfway toward achieving less than a year after approval.
