Power Station Company OPC Energy Strengthens and expands its collaboration with the environmental company Veins Involvement. As part of a business outline discussed between the two companies, Veridis will become a partner in the full operation of OPC’s electricity generation in Israel, with an investment of NIS 425 million in cash.
Veins Currently owns 20% of the Rotem power plant, 80% of which is held by OPC. According to the planned outline, establish OPC A new company that will absorb all its activities in the field of electricity production in Israel.
As part of the transaction between the parties, Veridis will flow NIS 425 million in cash to the new company, as well as its share (20%) in the Rotem power plant. In return, Veridis will be allotted 20% of the shares of the new company, which will concentrate all of OPC’s electricity activity in Israel and will hold 100% of the shares of the Rotem power plant located east of Dimona (in the Rotem plain).
The new company will focus on the production and supply of electricity and will own 100% of the power stations in Mishor Rotem, Hadera, Tzomet, Sorek 2, factory stations and plant extensions in Rotem and Hadera. In addition, the new company will hold additional activities such as production facilities in the consumer yard, virtual power supply activity, as well as 51% of the shares of Ginergy, which operates in the field of charging stations for electric vehicles and more.
The transaction is carried out at an estimated value by the parties of NIS 4.5 billion for Rotem’s activities, and at a value of NIS 1.7 billion for other OPC activities in Israel. After the completion of the transaction and the injection of capital, the estimated value of the new company will be approximately NIS 6.6 billion (after the money).
Completion of the transaction is subject to due diligence and is conditional on the completion of conditions precedent and approvals. According to OPC, the move is intended to simplify and streamline the structure of its operations in Israel, and to increase the synergy between all of the company’s activities in Israel.
OPC’s operations in Israel are currently headed by Eran Amuyel, who serves as CEO of the subsidiary OPCI Israel Energy in Israel. Even after the completion of the planned transaction, Amuyal will continue to head operations in Israel.
OPC operates in Israel through Rotem, a conventional power plant with a capacity of 466 MW in the Rotem Plain, a power plant with cogeneration technology with a capacity of 144 MW in Hadera and works to establish a conventional power plant with open circulation, with a volume of about 396 MW near the company junction . In addition, it entered into an agreement with IDI Technologies for the construction, operation and maintenance of an energy-producing natural gas facility of approximately 87 MW in the yard of the Soreq B desalination facility and in a number of additional binding agreements for the construction and operation of similar facilities.
In parallel with its holdings in Israel, OPC Energy also owns the American electricity company, CPV, which was acquired last year. OPC owns 70% of CPV, which supplies electricity through natural gas and wind energy, and also builds and develops solar and wind power plants in several areas of the United States.
“The coming years will be a huge challenge for the energy economy”
Giora Almogi, CEO of OPC Energy, said today that “we are in the midst of the clean energy revolution in Israel. The coming years will be a huge challenge for the energy economy which must continue to supply electricity continuously while stopping the use of coal and massive entry of electric vehicles.
“Just last week, an all-time high demand was broken, almost 15,000 megawatts while more than 4,000 megawatts still came from coal. The electricity sector will need in the coming years thousands of additional megawatts to come from natural gas and renewable energy using extensive storage and demand management.
“Since 2010, OPC has been leading the clean energy revolution in Israel and providing electricity to its customers in a reliable and economical way.
“The deal formed with Veridis will provide additional sources for our operations and will enable continued accelerated growth while creating a simple ownership structure that allows us to operate as a unified business unit and maximize the synergy inherent in the assets. “C. in Israel, and are working to further develop the various projects in Israel and ensure its future growth,” he added.
Veridis operates in three main areas of activity: the environment, water desalination and energy. The company is traded on the stock exchange at a value of NIS 4.6 billion, after last June it completed an initial public offering of shares, which included raising capital and offering to sell the controlling shareholders.
Ilan Ben Simon, CEO of Veridis, said today that “We see this transaction as a significant and synergistic business opportunity to expand our activities in the field of energy and electricity in Israel and establish our position in the field, with a holding in the company that will generate 1,200 megawatts by the end of next year. We believe that expanding our successful strategic partnership with OPC Energy, which is a significant player in the field of electricity and energy, will continue to contribute and create value for our shareholders. “
It should be noted that already three years ago, OPC and Veridis maintained contacts regarding the holding of Veridis in Rotem. As part of an outline then agreed between the parties, Veridis was to transfer to OPC its full holdings (20%) in Rotem companies, in exchange for an allotment of 13% of OPC shares to Veridis.
In addition, Veridis was required to invest an amount in cash against the allotment of additional ordinary shares of OPC, so that upon completion of the transaction, Veridis would hold 20% of OPC shares. However, following opposition from the Electricity Authority it was then decided not to proceed with the promotion of the outline.
The deal then reflected a value of NIS 480 million for 20% of Rotem’s shares, ie a value of NIS 2.4 billion for the entire company. Three years later, Rotem is valued at NIS 4.5 billion.