Dorad Board Approves NIS 250 Million Dividend Amid Luzon’s Partial Stake Sale

The board of Dorad power station unanimously approved a dividend distribution of 250 million shekels to shareholders. Dorad currently holds distributable reserves close to one billion shekels, with the previous dividend paid from profits in December 2025. Earlier today, the Luzon Group announced an agreement to sell 20% of its shares in Dorad, held through its subsidiary Luzon Energy, valuing the power station at 4.4 billion shekels. The shares are being sold to the investment house Meor via its pension and provident fund company. Meor is expected to acquire 6.75% of Dorad shares for 223 million shekels. A memorandum of understanding has been signed, and binding agreement negotiations will follow, alongside due diligence by Meor, with the deal likely to close.

Luzon, controlled by Amos Luzon, will receive 85 million shekels from the transaction, as it currently holds 33.75% of Dorad shares through Luzon Energy. Additionally, Harel and Clal Insurance may join in purchasing further shares from Luzon but intend to proceed only after the financial closing of Dorad 2 power station. This closing has been delayed because the Electricity Authority has yet to approve the new station’s construction. Adlatec, holding 18.75% of Dorad 1 shares, is expected to exceed 20% of Israel’s electricity production once the new station is operational.

About six months ago, Luzon acquired Alumay’s 18.75% stake in Dorad for 740 million shekels, competing with Ofer Yanai, who controls Alumay via Nofar. To finance this purchase, Luzon issued commercial papers through Clal and Meor, which carry interest and are due within a year. The delay in approvals for Dorad 2 extends Luzon’s financing costs. Dorad expects to receive the necessary approvals and complete the financial closing by the end of this year.