Economy03:00 · Aug 10

Nofar Energy Advances Talks to Acquire Israeli Energy Firm Highlight for Up to 150 Million Shekels

Calcalist

Translated & summarized from Calcalist by baba

Key points

01Nofar Energy is negotiating to buy Highlight for 100-150 million shekels under an exclusivity agreement.
02Highlight owns a 300-400 MW solar project pipeline but no active revenue projects yet.
03Gabi Buskila holds 92.5% of Highlight and could receive over 100 million shekels if sold.
04Nofar Israel recently acquired 47.5% of the 865 MW Reindeer gas power plant for 855 million shekels.
05Nofar Israel’s valuation rose 44% to 2.3 billion shekels after a 200 million shekel investment.
06Ofer Yanai leads Nofar’s strategy of rapid asset acquisition, development, and realization.

In this story

People

OrganizationsNofar Energy, Highlight, Nofar Israel, Meitav Investment House, Cellcom Energy, Phoenix Insurance, Generation Capital, Navitas

PlacesNetivot, Migdal HaEmek, Maale Adumim, Kfar Saba, Eilat, Ashkelon, Dimona, Sderot

The story · English

Nofar Energy, controlled by Ofer Yanai, is in advanced negotiations to acquire Israeli energy company Highlight for a valuation between 100 and 150 million shekels. Highlight, founded by three young entrepreneurs and backed by construction contractor Gabi Buskila, operates from Netivot and holds a significant project pipeline mainly in southern Israel. The company has an exclusivity agreement with Nofar, giving it a strategic advantage, though other market players remain interested and could potentially acquire Highlight if current talks fail.

Highlight’s portfolio includes solar panel projects for energy production and storage with a total capacity of 300 to 400 megawatts, primarily in agricultural and rural areas. Despite no active revenue-generating projects yet, the company has secured major tenders, including residential developments in Migdal HaEmek and Maale Adumim. Buskila owns 92.5% of Highlight and stands to receive over 100 million shekels in cash if the deal closes.

The acquisition would be executed by Nofar Israel, led by Nadav Barkan, amid a busy period for the company. Last week, Nofar Israel completed a major purchase of a 47.5% stake in the Reindeer power plant near Kfar Saba for 855 million shekels. The plant will have an 865-megawatt capacity and is expected to begin commercial operations in 2030.

Nofar Israel’s valuation recently surged to 2.3 billion shekels following a 200 million shekel investment from Meitav Investment House, marking a 44% increase since early 2023. This growth is attributed to project pipeline expansion, regulatory approvals, and accelerated timelines. The company also signed an 820 million shekel energy storage agreement with Cellcom Energy for 16 facilities totaling 100 megawatts of power and 500 megawatt-hours of storage.

Ofer Yanai, who recently returned as CEO, is driving a strategy focused on rapid asset acquisition, development, and realization. Nofar also prepaid about 400 million shekels of bonds early last week after bondholders rejected requested covenant calculation changes. Larger bond series supporting the company hold 2 billion shekels in debt.

Read the original at Calcalist