Eighteen months after UK company Ecofin invested in Solel Solar Systems Ltd., a new strategic development is taking place. German giant Siemens is examining the possibility of acquiring Solel, which is a global leader in building solar thermal fields. Discussions are being conducted through Credit Suisse.
Ecofin has not responded to the reports. Siemens and Credit Suisse have declined to comment, while Solel said, "The company does not comment on rumors."
Sources in the industry state that Solel hopes that the value of the deal will be at least between $200-250 million, although there is not yet talk of concrete sums. Some industry experts expect any acquisition figure to be lower, especially in the light of Solel's weak financial performance in 2008. Solel hopes that matters will improve in 2009, after signing a range of deals, which if implemented will bring in substantial revenue.
Solel's most important competitor in setting up solar thermal fields of parabolic troughs and receivers is the German company Schott, which has three production lines, while Solel has just one production line in Bet Shemesh. There is strong demand for the type of receivers that Solel manufactures as there is an urgent need to set up power stations that utilize clean energy. Thus the products of both companies, Solel and Schott, enjoy high demand.
Even before the economic crisis, Solel struggled to find investors that were interested in upgrading its capabilities from a manufacturer of receivers as solar thermal modules to a company that from scratch establishes and operates power stations and sells the electricity it generates. Such an upgrade requires the company to prove that it has the capability.
Solel has been seeking an investor for a long time. However, Siemens is examining the possibility of acquiring the company rather than investing.
Published by Globes [online], Israel business news - www.globes-online.com - on June 11, 2009
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