TEL-AVIV, Israel, May 28, 2014 /PRNewswire/ --
Executed a Binding LOI to Acquire
5.6 MWp PV Plants in Spain
The Transaction Will Triple the
Company's Operating Assets in Spain
Ellomay Capital Ltd. (NYSE MKT:
ELLO; TASE: ELOM) ("Ellomay"
or the "Company") an emerging operator in the
renewable energy and energy infrastructure sector, today announced
its entry into a binding Letter of Intent for the purchase of 3
photovoltaic (solar) plants with approximately 5.6MWp (with nominal
output of approximately 5.2MWn) in the aggregate (the
"PV Plants"). The PV Plants are ground
mounted fixed technology plants and are located in Murcia,
Spain. The PV Plants are already
constructed and operating and were connected to the Spanish
national grid in 2011.
The PV Plants are held by a Spanish company (the
"Seller") whose German parent company has entered into
insolvency proceedings. According to the Letter of Intent, the PV
Plants and all associated assets and rights shall be purchased by
Ellomay for an aggregate purchase price of Euro 9.5 million (approximately US$13 million), subject to certain purchase price
adjustments (the "Purchase Price").
The Letter of Intent provides for a 30 days exclusivity period
for the finalization and execution of definitive
agreements. Execution and closing of the transaction is
expected to occur on or about the end of June, 2014.
The acquisition of the PV Sites is expected to more than triple
the current production capacity of Ellomay's existing photovoltaic
sites in Spain to approximately
7.9MWp. The PV Plants will join the Company's thirteen existing
photovoltaic sites in Italy and
Spain increasing their aggregate
capacity to more than 30MWp . The Company expects that the annual
revenue from the PV Plants will be approximately Euro 2 million (approximately US$ 2.7 million), and together with the Company's
entire PV portfolio the annual revenue will be approximately
Euro 13.2 million (approximately
US$18 million).
Ran Fridrich, CEO of Ellomay noted that "Ellomay aims to exploit
attractive investment opportunities and execute transactions at
bargain prices and this transaction is further proof of our
capabilities to carry out such transactions."
About Ellomay Capital Ltd.
Ellomay is an Israeli based company whose shares are registered
with the NYSE MKT, under the trading symbol "ELLO" and with the Tel
Aviv Stock Exchange under the trading symbol "ELOM." Since
2009, Ellomay Capital focuses its business in the energy and
infrastructure sectors worldwide. Ellomay (formerly Nur
Macroprinters Ltd.) previously was a supplier of wide format and
super-wide format digital printing systems and related products
worldwide, and sold this business to Hewlett-Packard Company during
2008 for more than $100 million.
To date, Ellomay has evaluated numerous opportunities and
invested significant funds in the renewable, clean energy and
natural resources industries in Israel, Italy
and Spain, including:
- Approx. 22.6MWp of photovoltaic power plants in
Italy and 85% of 2.3MW of
photovoltaic power plant in Spain;
- 7.5% indirect interest, with an option to increase its holdings
to 9.375%, in Dorad Energy Ltd. Israel's largest private power plant to date,
with production capacity of more than 800MW, representing about 6%
of Israel's power capacity.
Ellomay Capital is controlled by Mr. Shlomo Nehama, Mr. Hemi
Raphael and Mr. Ran Fridrich.
Mr. Nehama is one of Israel's
prominent businessmen and the former Chairman of Israel's leading bank, Bank Hapohalim, and
Messrs. Raphael and Fridrich both have vast experience in financial
and industrial businesses. These controlling shareholders, along
with Ellomay's dedicated professional management, accumulated
extensive experience in recognizing suitable business opportunities
worldwide. The expertise of Ellomay's controlling shareholders and
management enables the company to access the capital markets, as
well as assemble global institutional investors and other potential
partners. As a result, Ellomay is capable of considering
significant and complex transactions, beyond its immediate
financial resources.
For more information about Ellomay, visit
http://www.ellomay.com.
Information Relating to Forward-Looking Statements
This press release contains forward-looking statements that
involve substantial risks and uncertainties. All statements, other
than statements of historical facts, included in this press release
regarding our plans and objectives of management are
forward-looking statements. The use of certain words, including the
words "estimate," "project," "intend," "expect," "believe" and
similar expressions are intended to identify forward-looking
statements within the meaning of the Private Securities Litigation
Reform Act of 1995. We may not actually achieve the plans,
intentions or expectations disclosed in our forward-looking
statements and you should not place undue reliance on our
forward-looking statements. Various important factors could cause
actual results or events to differ materially from those that may
be expressed or implied by our forward-looking statements,
including delays in the finalization and execution of the detailed
agreements by the Company and the Seller, changes in the regulatory
provisions applicable to the PV Plants and the remuneration payable
for them (including changes in the draft of the new legislation
published in February 2014),
non-fulfillment of one or more of the conditions precedent set
forth in the Letter of Intent, changes in the actual output of the
PV Sites and the other photovoltaic sites owned by the Company and
changes in the financial market that could affect the ability of
the Company to obtain financing from financial institutions or from
alternative sources in order to fully fund the purchase price of
the PV Sites. These and other risks and uncertainties associated
with our business are described in greater detail in the filings we
make from time to time with Securities and Exchange Commission,
including our Annual Report on Form 20-F. The forward-looking
statements are made as of this date and the Company does not
undertake any obligation to update any forward-looking statements,
whether as a result of new information, future events or
otherwise.
Contact:
Kalia Weintraub
CFO
Tel: +972(3)797-1111
Email: anatb@ellomay.com
SOURCE Ellomay Capital Ltd