Orad Ltd. (TASE: ORAD) is in negotiations to acquire all the shares in privately owned company Solarpower, which designs, builds, and maintains solar power systems, and also initiates alternative energy projects in Israel. Orad added that the acquisition "would be on the basis of presentations and indemnities to be given to the company by the sellers and acquired company, as is customary in deals of this type." Completion of the deal is subject to several conditions, including the consent of the parties providing the financing and approval by the Antitrust Authority director general.
Solarpower, managed by cofounders and co-CEOs Avinoam Levy and Alon Tamari, was founded in 2003. Its business focuses on solar (photovoltaic) energy. Orad deals in projects in Israel and overseas involving security, safety, communications, and control. In its last financial reports, Orad reported a NIS 14 million equity deficit, and the company has NIS 5.5 million in cash and short-term investments.
The company's accountants draw attention to the option it has for a sale option to the Origo Investments GP fund for NIS 32 million. This option was exercisable starting last August through notification, and the proceeds from the option must be transferred to Origo within a year of the notification.
Orad's shareholders include CEO Ariel Adoram, Yitzhak Sultan, and Nir Peleg. The company finished the first half of the year with an improvement in revenue, which reached NIS 82 million, and a net profit of over NIS 3 million.
Published by Globes [online], Israel business news - www.globes-online.com - on September 20, 2015
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