Amos Luzon Sells 20% Stake in Energy Business for 223 Million Shekels
Translated & summarized from Globes by baba
Amos Luzon's group agreed to sell 20% of its energy business for 223 million shekels, valuing the Dorad power station at 4.4 billion shekels. This follows Luzon's full acquisition of the energy operations from Alomay and increases his stake to about 33.75%. The deal reflects a significant rise in Dorad's valuation amid growing sector interest.
The story in 6 lines · by baba
- Amos Luzon sells 20% of his energy business for 223 million shekels.
- The Dorad power station is valued at 4.4 billion shekels in the deal.
- Luzon recently completed full acquisition of the energy operations from Alomay.
- Luzon's stake in Dorad power station rises to approximately 33.75%.
- Phoenix Insurance bought 10% of Dorad a year ago at a 2.8 billion shekel valuation.
- Luzon Group's market value surged nearly 190% over three years, now at 1.9 billion shekels.
Amos Luzon's business group is set to realize significant value from its energy operations after signing a memorandum of understanding to sell 20% of its energy activities for 223 million shekels. This deal values the Dorad power station, held by Luzon's energy subsidiary, at approximately 4.4 billion shekels. The transaction follows Luzon's recent full acquisition of the energy business from Alomay, concluding a competitive process against renewable energy company Nofar Energy, controlled by businessman Ofer Yanai.
Earlier this year, Nofar Energy completed its purchase of Alomay, which previously owned half of Luzon's energy operations. The sale price of 742 million shekels for the 20% stake aligns with the valuation expected for the institutional investor entering the business. As a result, Luzon's group now holds about 33.75% of the private power station located south of Ashkelon through its wholly owned subsidiary Luzon Energy.
This latest transaction marks a substantial increase in Dorad's valuation amid growing interest in the energy sector. About a year ago, Phoenix Insurance acquired a 10% stake in the power station from Turkish company Zorlu for 280 million shekels, valuing Dorad at 2.8 billion shekels. Luzon Energy also purchased Zorlu's remaining 15% stake at that valuation.
The value realization represents a major milestone for Luzon, who acquired control of the energy business about a decade ago. In 2016, Luzon bought control of real estate company A. Dori from Gazit Globe for just 10 million shekels after Gazit Globe suffered heavy losses due to its failing construction subsidiary. Luzon rebranded the company as Luzon Group and significantly improved its assets, which include the Dorad power station and Ronson, a residential real estate developer in Poland, alongside its financing operations.
Currently, Luzon Group is valued at around 1.9 billion shekels, reflecting a more than 50% increase in the past year and nearly 190% over three years, driven largely by its energy business growth.
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