Siemens AG (NYSE: SI; XETRA: SIE) is not only interested in acquiring Solel Solar Systems Ltd. Sources inform ''Globes'' that Siemens is also in negotiations to acquire 20% of Arava Power Company at a company value of several tens of millions of dollars. Industry sources believe that the talks are at an early stage. Arava Power declined to comment on the report.
Arava Power is one Israel's top three photovoltaic solar power integrators. It is managed by chairman Ed Holland and CEO Jonathan Cohen. Kibbutz Ketura owns 40% of the company and a group US investors led by Arava Power president Yosef Abramowitz own 60%.
Arava Power has cooperation agreements with 20 moshavim and kibbutzim in the Negev, which own land available for the construction of photovoltaic power stations. The estimated investment in the company is $2.5 billion.
Arava Power, Sunday Israel Ltd., and Shikun u'Binui Holdings Ltd. (Housing and Construction) (TASE: HUCN) subsidiary Shikun u'Binui Solaria Ltd. have made the most progress to date in developing solar energy projects in Israel. Arava Power has the largest amount of land available for solar power farms.
Arava Power has been the target of several foreign solar energy companies. Among others it has been in contact with US corporations AES Corporation (NYSE: AES) and SunEdison LLC.
Solar industry sources say that Siemens wants to invest in just such a partnership in order to be able to supply equipment for the planned solar power fields, and not merely as a financial investment. Siemens' interest in Solel Solar is different from its interest in Arava Power. Solel Solar develops and manufactures thermosolar panels and technology, so Siemens wants to acquire the company, not just become a shareholder. However, in the case of companies planning to build solar power projects, such as Arava Power, Siemens prefers acquiring a stake with the goal of selling its equipment, as well as generating profits from electricity sales.
Published by Globes [online], Israel business news - www.globes-online.com - on July 26, 2009
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