Adelteq in negotiations to acquire 50% of Hagit power plant for 800 million shekels
The energy company Adelteq, controlled by Uri Adelsburg, is conducting initial contacts to acquire 50% of the Hagit power plant from Shikun & Binui Energy. The value of these holdings is estimated at approximately 800 million shekels net.
The energy company Adelteq, controlled by Uri Adelsburg, is conducting initial contacts to acquire 50% of the Hagit power plant from Shikun & Binui Energy, Calcalist has learned. The value of these holdings is estimated at approximately 1 billion shekels (800 million shekels net value after debt).
Adelteq holds 25% of the shares of the Hagit power plant, located near the Elyakim junction and operating with a capacity of about 660 megawatts. If the acquisition is completed, Adelteq will increase its holding to 75% in the station. The remaining holdings are divided between the Keystone fund (16%) and Menora Mivtachim (9%). The latter may join the deal because they claim it is their right if one of the partners sells its shares. In such a case, they may purchase half of the shares to be sold, i.e., 25% of the station's shares.
The shares held by Shikun & Binui Energy were included in the deal for its sale to the infrastructure REIT fund Generation Capital, which was signed for 4.45 billion shekels and has not yet been completed. Shikun & Binui, the parent company of Shikun & Binui Energy, preferred the Generation offer over the competing Keystone fund offer, which stood at 4.35 billion shekels.
It was also learned that Adelteq is expected to finance the share purchase by bringing in Leumi Partners for an investment of 2 billion shekels in the company. Half of the amount is intended as an exit for Adelsburg and half will be injected into the company. Without the Leumi Partners deal, Adelteq will find it difficult to execute the acquisition. Adelteq refused to comment on the details of the report.
At the same time, Calcalist learned that Adelteq is conducting contacts with Shikun & Binui itself to build the Sorek power plant, at a cost estimated at more than 1 billion dollars. Adelteq prefers the offer of Solel Boneh, the subsidiary of Shikun & Binui, which is more expensive by tens of millions of dollars, over cheaper offers from Chinese companies.
As part of the deal for the acquisition of Shikun & Binui Energy by Generation Capital and its merger into PowerGen, controlled by Generation, the latter is examining various moves regarding its power plant portfolio. The background to the contacts for the sale of the holdings in Hagit to Adelteq stems from Generation's need to receive the approvals of the Electricity Authority and the Competition Authority for the deal. Obtaining the approvals is not without difficulties, but Generation has formulated several outlines for a solution, including the sale of its share in Hagit.
