Renewable energy co Solegreen raises NIS 380m on TASE

Solegreen has also signed a non-binding agreement to invest $104 million in a US company in the commercial and household solar energy sector.

Israeli renewable energy company Solegreen (TASE: SLGN) has completed raising NIS 380 million in new shares at NIS 37.06 per share, a 6% premium on Thursday's closing price. Controlling shareholder Generation Capital (TASE: GNRS) expressed its confidence in the offering by buying 50% of the shares for NIS 190 million in order to retain its 51% stake. The offering was led by Poalim IBI.

At the same time, Solegreen reported that it has signed a non-binding memorandum of understanding (MoU) with a company operating in the commercial and household solar energy sector in the US. Contingent on due diligence and signing a binding MoU, Solegreen will invest $104 million (NIS 340 million) in the US company by buying shares from existing shareholders and extending loans. $64 million will be paid, when the deal is closed, and the balance during 2022, subject to milestones that have been set. After completion of the deal, Solegreen will hold a 48% stake in the US company.

Solegreen reports that the US company was founded in 2016 and has revenue of $60 million and $10 million net profit in 2020. The US company expects revenue of $165 million in 2021.

Solegreen CEO Tom Shafran said, "2020 was the most substantial year for the company in which we developed several significant engines of growth, which have dramatically increased the company's volume of activities and the segments in which we operate. According to the plan for 2021, the company will operate in Israel, Italy, and the US and implement its growth strategy while consolidating its business model diversification both in terms of geography and the areas of activity in each country."

Published by Globes, Israel business news - - on January 31, 2021

© Copyright of Globes Publisher Itonut (1983) Ltd. 2021

Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018