Phoenix Invests 234 Million Shekels in PowerGen Valued at 3.25 Billion Shekels
Phoenix Insurance is investing 234 million shekels in PowerGen, an energy company owned by Generation Fund, acquiring a 7.2% stake. Additionally, Phoenix will repay previous financing provided to the group’s projects in Poland, increasing its ownership to 12.4%. This investment values PowerGen at 3.25 billion shekels, a significant rise from the 1.26 billion shekels recorded in Generation’s books at the end of 2024 and hundreds of millions more than the value noted in March. The current investment is expected to generate a pre-tax profit of 270-320 million shekels for the fund in the second quarter.
This deal precedes the approval of a major acquisition where Generation plans to purchase Shikun & Binui Energy for an additional 4.45 billion shekels. Two other large investors, likely institutional, are expected to invest between 500 and 800 million shekels upon completion of the transaction, bringing total investments to between 734 million and 1 billion shekels.
PowerGen has rapidly expanded from holding small power plants and projects in Europe and the US to owning significant assets, including the Reindeer power plant valued at 1.8 billion shekels and the largest private home electricity supplier in Israel, BezeqGen, with over 100,000 customers. It also recently received approval for a power plant in Beit Shemesh in partnership with Shamir Energy. The planned merger with Shikun & Binui Energy will further increase its asset base.
Phoenix has been active in the energy sector, previously holding stakes in Shikun & Binui and the Dorad power plant, which it sold to Menora and Edeltec, and recently divested its share in the Reindeer plant. The current investment marks Phoenix’s renewed involvement in energy through PowerGen.
Generation Fund stated that these transactions are part of the steps to finalize the Shikun & Binui Energy acquisition, supported by nearly one billion shekels raised from major institutional investors and the sale of a stake in Porterbrook. The fund currently holds about 1.8 billion shekels in cash and credit lines, with low leverage under 10%, enabling bond issuance to complete financing while maintaining a high credit rating. Phoenix’s and other institutional investments complement existing financing sources for the Shikun & Binui Energy deal.
