Ormat set to complete acquisition of US Geothermal

Ormat photo: NYSE

A large majority of the US company's shareholders supported the $110 million deal.

 

A general shareholders' meeting of US Geothermal has approved the sale of the company to Ormat Technologies Inc. (NYSE: ORA; TASE: ORA) for $110 million. US Geothermal, a renewable energy company focusing on the development, production, and sale of electricity from geothermal energy, yesterday reported that 94.9% of all those present at its shareholders' meeting several days ago, making up 67.9% of all the company's shareholders, had voted in favor of the deal. Approval of the deal required a 50% majority.

<p>Ormat is engaged in geothermal energy, both in building power stations (its products division) and owning them (its electricity division). The company's market cap is $3 billion. Ormat reported its acquisition of US Geothermal in January, noting at the time that US Geothermal operated three geothermal power stations in the US designed to produce 45 megawatts and producing a net of 38 megawatts.

<p><b>Goal: improve profit margins on projects</b>

<p>The acquired company is developing three more projects in the US and one in Guatemala. Ormat also said that as part of its plans for improving the acquired portfolio's performance, utilizing synergy, and saving on costs, it expected to improve profit margins on active projects by 50% in 2019.

<p>Ormat projects $688-712 million in revenue in 2018; the midpoint of this range is 1% more than the company's revenue in 2017. This projection does not include any contribution from US Geothermal.

<p><i>Published by Globes [online], Israel business news - <a href=http://www.globes-online.com>www.globes-online.com</a> - on April 24, 2018</i>

<p><i>© Copyright of Globes Publisher Itonut (1983) Ltd. 2018</i>

Ormat photo: NYSE
Ormat photo: NYSE
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