Rapac Energy has signed an agreement to buy 50.1% of the planned Orot Yitzhak power project from Ari Real Estate’s subsidiary Mifrashim and its partner Avnei Sapirim for up to NIS 370 million, according to Sunday reports. The agreement advances the talks reported Saturday, but payments depend on milestones and the station remains in planning rather than under construction or operating.
The consideration is scheduled in three stages: NIS 37 million when the deal’s conditions precedent are fulfilled, NIS 74 million when the required statutory plan is approved, and NIS 259 million subject to financial close. Those amounts are the reported seller consideration, not cash paid in full at signing.
The gas-fired station is planned initially for about 850 megawatts. If a further unit of about 850 megawatts is approved, the sellers could receive up to NIS 180 million more, depending on the scale of the expansion.
The project is still going through the National Infrastructure Committee’s planning process. Final approvals, financing and construction remain ahead, so the agreement concerns rights in a planned project rather than a producing power station.
As a report explains, the NIS 370 million seller payment differs from the broader project valuation: future land payments and planning costs form part of the partners’ investment, not additional proceeds to the sellers. The reported valuation therefore should not be read as the purchase price of Rapac’s stake.
After completion, Ari Real Estate would retain about 30% through Mifrashim and Avnei Sapirim about 20%. The developers previously held talks with Shamir Energy about bringing it into the project, but those talks did not produce a deal.
Ari Real Estate estimates total prospective project profit of about NIS 330 million, rising to about NIS 430 million if the expansion to 1,700 megawatts is approved, according to the Sunday account. These are estimates tied to the project’s eventual scope and progress, not profit already received.
Rapac, controlled by the Oren family, is expanding its Israeli electricity-generation portfolio. For the Orot Yitzhak partners, the next steps are the approvals and financing needed to turn a planning-stage investment into an operating station.
JBizNews Desk | Tel Aviv, Israel
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