First Israel Mezzanine Investors Fund (FIMI) and the Bronicki family have signed a joint control agreement for Ormat Industries Ltd. (TASE: ORMT), under which each party will own 22.5% of the company.
On Thursday, Bronicki Investments Ltd., through which the family owns Ormat, sold 13,715,934 Ormat Industries shares (11.7% of the company) to FIMI unit FIMI ENRG LP at NIS 21.67 per for a total of NIS 297 million. The price reflected a premium of 27% on Ormat's closing price on the TASE on Wednesday.
Yehudit Bronicki will continue to serve as CEO Ormat Industries and Yoram Bronicki will continue as president and CEO of its US subsidiary, Ormat Technologies Inc. (NYSE: ORA). and FIMI CEO Ishay Davidi will take over as chairman of Ormat Industries, while senior partner Gillon Beck will take over as chairman of Ormat Technologies.
Under the agreement, in two years, the Bronickis will have the right to transfer to FIMI that balance of their NIS 183 million bank loan in exchange for equity. If they exercise this right, Bronicki Investment's stake in Ormat Industries will fall to 14.7% and FIMI's stake will increase to 30.2%.
After five years, FIMI will have the right to exercise its call option for an additional 9.3 million Ormat shares at NIS 29.17 per share.
On Friday, Ormat Industries reported double-digit revenue growth, and a narrowing of its net loss, in 2011. Revenue rose 16% to $439.9 million from $379 million in 2010. Net loss fell to $37.7 million ($0.19 per share) in 2011 from $46 million in 2010.
Electricity segment sales rose to $323.8 million in 2011 from $297.6 million in 2010, and products sales rose to $113.2 million from $81.4 million.
In the guidance for 2012, the company predicts $465-495 million revenue: $315-330 million revenue from its electricity segment and $150-165 million revenue from its product segment. Product segment revenue is projected to rise 40% in 2012, after rising 39% in 2011.
For the fourth quarter, revenue rose to $123.7 million from $92.8 million for the corresponding quarter of 2010, and net loss narrowed to $41.4 million ($0.22 per share) from $73.6 million.
Ormat Industries' share price rose 5.6% in morning trading on the TASE today to NIS 17.84, giving a market cap of NIS 2 billion, after Ormat Technologies' share rose 1.8% in New York on Friday to $20.52, giving a market cap of $932 million.
Published by Globes [online], Israel business news - www.globes-online.com - on March 18, 2012
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