Key Takeaways
Ellomay Capital Ltd. (NYSE American: ELLO) completed the sale of its indirect stake in Dorad Energy Ltd., securing approximately NIS 559.8 million ($151 million) in a deal that values the power producer at NIS 4.4 billion and provides capital to reduce corporate debt.
"We are pleased to complete this transaction, which reflects the significant value created through our investment in Ellomay Luzon Energy," Ran Fridrich, CEO of Ellomay, said. "The proceeds from the sale will support the development of our growing portfolio of projects and provide enhanced financial flexibility as we execute on our strategic plans."
The transaction involved Ellomay selling its 50 percent holding in Ellomay Luzon Energy Infrastructures Ltd. to the Amos Luzon Development and Energy Group. Ellomay Luzon Energy’s primary asset is a 33.75 percent stake in Dorad. The final purchase price was calculated from an implied NIS 742.5 million valuation for the indirect holdings, less approximately NIS 182.7 million in net debt.
The deal fortifies Ellomay’s balance sheet by earmarking funds for debt reduction. The company has deposited about NIS 166.2 million as collateral for the early repayment of approximately NIS 170 million in Series E Secured Debentures, which is scheduled for May 24, 2026. This move is expected to sharpen the company's focus on its core renewable energy operations.
Despite the strategic divestment aimed at strengthening its financial position, shares of Ellomay fell 3.92 percent on the day of the announcement. The sale provides a significant cash infusion that management will deploy to advance its project pipeline, which includes solar projects in Spain, Italy, and the US, alongside a pumped storage project in Israel.
The company's portfolio includes approximately 335.9 MW of operating solar plants in Spain and a 51 percent stake in 38 MW of solar plants in Italy. It is also developing 160 MW of solar projects in Italy and 38 MW in Texas, USA, signaling a continued focus on expanding its renewable energy footprint following the monetization of its Dorad stake.
This article is for informational purposes only and does not constitute investment advice.
