Energix completes Golan wind project purchase

wind turbines

The Ministry of Defense currently opposes the wind farm project on the Golan Heights.

Green energy company Energix Renewable Energies Ltd. (TASE: ENRG) is seeking to expand in the field of wind energy, and today announced the completion of an investment and acquisition of control deal in a 155 megawatt capacity wind farm project in the Golan Heights.

This deal was completed after the preconditions were met, including receiving court approval for an arrangement with the existing project company creditors. Energix, which is controlled by Alony Hetz Property and Investments Ltd. (TASE: ALHE), believes that if the project reaches the financial closing stage, the capital that will be required for it will amount to NIS 200 million.

Energix has received 100% of the management rights in the project company and 75% of the shares with dividend rights. The company says that the requisite financing will be provided through owner loans or equity. This project has been under development for more than eight years. In the past, the project was a recognized national infrastructure project, and received a conditional license. However, in 2011, after the license-holder did not meet the conditional licenses milestones, it expired, and development was suspended.

Currently, Energix, managed by Asa Levinger, will work to renew the processes. The company believes that the cost of setting up the project will be NIS 1 billion, and that annual revenue from the project is expected to be NIS 185 million. Energix says it is in talks with various parties regarding development, and possible solutions to Ministry of Defense considerations, which, to the best of the companys knowledge, has changed its position vis-à-vis the project, and as of the date of this report, disapproves of its establishment.

In the absence of Ministry of Defense approval, and considering other regulatory and planning considerations, at this stage, Energix is unable to estimate whether it will be able to advance the project, complete development, and bring the project to financial closure. Energix deals in construction, management, and sale of electricity from solar energy systems, and is traded on the Tel Aviv Stock Exchange (TASE) at a market cap of NIS 340 million, after rising 47% in the last year.

Published by Globes [online], Israel business news - www.globes-online.com - on September 15, 2014

Copyright of Globes Publisher Itonut (1983) Ltd. 2014

 
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