Sources inform ''Globes'' that Ormat Industries Ltd. (TASE: ORMT) subsidiary Ormat Technologies Inc. (NYSE: ORA) will sell 3.1 million shares to Lehman Brothers Inc. (NYSE: LEH) in a block trade at $48 per share. The share fell 7% on Friday, but rose 0.8% in after after-hours trading to over $50, giving a market cap of $2.1 billion.
As a result of the sale, Ormat Industries' holding in the company will fall to 56% from 60%.
The capital market sources added the companies will notify the US Securities and Exchange Commission (SEC) of the pricing on Monday. Closing and payment will be made on Wednesday. Lehman Brothers will pay Ormat Industries $149 million for the shares. The price tag is below Ormat Technologies closing price on Friday, and 10% below Thursday's closing price of $53.44, when the company announced the sale.
Earlier last week, the geothermal developer published its financial report for the first quarter of 2008 last week. The company posted $69.4 million revenue, up 12.4% on the $61.7 million on the corresponding quarter of 2007. The company attributed the growth to a 36% increase in electricity segment sales offset by lower revenue in its products segment.
Ormat Technologies posted a net profit of $10.1 million ($0.24 per share) compared with a net loss of $5.8 million for the corresponding quarter. The company attributed most of the improvement to an increase in generating capacity and energy generation, as well as an increase in energy rates in the US as well as a 16% drop in expenses.
Ormat Technologies CEO Yehudit Bronicki said, "The first quarter performance was in line with our expectations for 2008 and highlighted our improved operating performance, increase in our overall generating capacity and improvement in power prices in certain projects." She noted that the company announced the commercial operation for the Galena 3 and Heber South projects during the quarter and that it continued to make progress on exploration work to secure geothermal resources for 2010 and beyond.
Bronicki reiterated the company's guidance for 2008, including $245 million revenue from the electricity segment, and $70-80 million for the products segment.
Published by Globes [online], Israel business news - www.globes-online.com - on May 11, 2008
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