Nofar Energy Negotiates $1.8 Billion Deal for Stake in Reindeer Power Plant Project

Nofar Energy, controlled and managed by Ofer Yanai, confirmed it is in advanced talks to acquire a 47.5% stake in the Reindeer power plant project for 855 million shekels, valuing the entire project at 1.8 billion shekels. The deal includes purchasing Phoenix's full 39.5% holding and shares from several smaller investors. Upon completion, Nofar will also gain 35% rights to a nearby 60-dunam land parcel with potential for a new power plant or data center farm.

The Reindeer project, planned for southern Sharon, is designed to have an 865-megawatt capacity and is currently in advanced licensing and development stages. Yanai appointed himself CEO of Nofar Energy in September after serving as chairman for many years and following the departure of two veteran CEOs in June 2023. Since Yanai became CEO, Nofar has engaged in several significant transactions, including acquiring control of Alumi, purchasing a $300 million U.S. portfolio, entering the data center sector, and bringing Bank Leumi into the company.

Since Yanai's appointment as permanent CEO, Nofar's stock price surged 113%, reaching a market value of 8.4 billion shekels. This growth positions Yanai halfway toward an unprecedented compensation package in the Israeli capital market, potentially worth 760 million shekels or more. In November, shareholders approved Yanai's compensation, which includes restricted shares representing 4.76% of the company after vesting. Yanai paid 0.30 shekels per restricted share, totaling 533,000 shekels. The shares will vest if Nofar's market value reaches 16 billion shekels at any point before November 2028. Achieving this milestone would unlock shares valued at 760 million shekels, a target Yanai is more than halfway to reaching less than a year after approval.