Gilatz Investments Ltd. (TASE: GLTS), which develops solar energy facilities, has signed a letter of intent to acquire two Italian solar energy parks currently under construction for NIS 40 million. The two solar energy parks, at Nardo and Copertino, cover 69,600 square meters altogether and will produce 1.92 megawatt/hour.
The deal marks Gilatz's entry into the Italian solar energy market. Over the past two years, the company has strengthened its presence in the Spanish solar energy market through its local subsidiary, Gilatz Spain SL. The company's Spanish solar energy parks currently produce 19 megawatt/hour of electricity.
Gilatz is entering Italy following legislation to encourage solar energy production by the private sector. The Ministerial Decree of 19 February 2007 sets a feed-in tariff for electricity generated by photovoltaic arrays of €0.346 per kilowatt/hour, which is paid on top of the market price that Gilatz will get for the electricity. The feed-in tariff will be in effect for 20 years from the start of production by the solar energy parks.
Gilatz's share was unchanged today at NIS 11.02, giving a market cap of NIS 301 million.
Published by Globes [online], Israel business news - www.globes-online.com - on January 27, 2010
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