Elovitch to buy Enlight Renewable Energy

Eurocom unit Sahar will buy the builder of photovoltaic solar arrays for NIS 8 million.

Shaul Elovitch's Eurocom Group subsidiary Sahar Investments Ltd. (TASE:SAIN-M) has signed an memorandum of understanding (MOU) to acquired Enlight Renewable Energy Ltd. at a company value of NIS 8 million, before money. A deal is still subject to due diligence.

Sahar is a stock market shell. It will allot 15% of its shares to Enlight's owners in the deal, plus up to an addition 5% of shares subject to Enlight meeting certain milestones.

At the same time, Sahar will sell 21% of its shares to Elovitch's partner in Eurocom Global Real Estate Ltd. (TASE: EGRE), Dr. Yair Weil. The deal reflects a company value of NIS 42 million for Sahar.

Enlight builds photovoltaic solar arrays, both independently and a contractor for other companies. The electricity generated is sold to the national grid at preset rates. In this sense, the company's business resembles the income-producing business of Eurocom Global Real Estate. It is necessary to located and buy the site, build and finance construction, after which the company receives revenue over a period of years.

Eurocom VP and Sahar CEO Amikam Shorer said, "If we expand our cleantech activities beyond the present deal, Sahar will be the designated company.

Published by Globes [online], Israel business news - www.globes-online.com - on October 14, 2009

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

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