Arison unit negotiating to buy Solel Solar Systems

The race to buy Solel heats up as Shikun u'Binui Holdings competes with Siemens for the solar energy company.

Sources inform "Globes" that Arison Holdings Ltd.unit Shikun u'Binui Holdings Ltd. (Housing and Construction) (TASE: HUCN) has joined the race to acquire Beit Shemesh based Solel Solar Systems Ltd.. As reported last month, German giant Siemens AG (NYSE: SI; XETRA: SIE) is also holding talks to buy Solel at a valuation of between $150-250 million.

Both Shikun u'Binui Holdings and Siemens are conducting the negotiations through Credit Suisse, which was hired by UK company Ecofin Investment Fund, the largest shareholder in Solel, to find an investor. While Shikun u'Binui Holdings is in advanced negotiations, Siemens has still not given up the idea of buying Solel, which is controlled by Ecofin (40%) and Belgian investor Louis Begeau (27%).

If the deal goes ahead, this will be Shikun u'Binui Holdings' largest strategic acquisition in the solar energy sector under CEO Ofer Kotler. Shikun u'Binui Holdings and Solel are already cooperating in the bid for the $700 million government tender to build a solar energy plant at Ashelim in the Negev.

Shikun u'Binui Holdings operates in the field of solar energy through subsidiary Shikun u'Binui Environment, whose CEO Amir Levi was formerly the Ministry of Finance's deputy budget director. Last month, Levi told "Globes" regarding his company's cooperation with Solel, "The main reason we went together with Solel is their technological capability in the area together with our abilities to build and finance."

Published by Globes [online], Israel business news - www.globes-online.com - on July 12, 2009

© Copyright of Globes Publisher Itonut (1983) Ltd. 2009

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