Doral Increases US Holdings With $738 Million Investment to Gain Majority Control

Doral is expanding its stake in its American subsidiary, Doral LLC, by acquiring an additional 27% for $738 million (approximately 2.2 billion shekels), raising its ownership from 26% to 53.2%. This strategic move involves three components: a $400 million capital injection into Doral LLC, which will grant Doral 9.7% more shares; an updated agreement with partner CAG, owned by CEO Nick Cohen, where Doral will purchase an additional 5.8% from CAG for $206 million, partly in cash and partly through Doral shares; and the conversion of prior convertible instruments and transactions amounting to 11.8%, valued at $132 million.

Following the transaction, Doral will hold 53.2% of Doral LLC, alongside Migdal Insurance with 11.4% and the Dutch investment fund APG with 35.4%. This restructuring simplifies the ownership framework and may facilitate a future public offering. The deal also provides Doral LLC with sufficient liquidity to advance its projects without needing further capital injections. Doral plans to finance the investment and cash components from its own resources.

Doral CEO Yoni Hantsis described the deal as strategic, enhancing access to its main growth engine in the US and providing liquidity for project development. The company expects a net profit recognition of 80-120 million shekels in upcoming quarterly reports due to derivative revaluation. Additionally, Doral updated its revenue forecast, projecting 1.9-2.05 billion shekels from projects excluding partner income, up from 1.83-1.98 billion shekels previously. Revenues from mature projects and tax-advantaged projects in their first operational year are expected to increase by 340 million shekels to a total of 3.86 billion shekels. EBITDA for 2027 is forecasted to grow from 748-867 million shekels to 813-932 million shekels, with contributions from mature and tax-advantaged projects rising from 1.8 billion to 2.1 billion shekels.