Enlight to Sell 44% of Sunlight Partnership to Harel and Amitim
Deal News | Jan 28, 2025 | Globenewswire
Enlight Renewable Energy, a leading company in the renewable energy sector, has signed an agreement to sell 44% of its stake in the Sunlight cluster of renewable energy projects in Israel. The buyers, Harel Insurance Investments & Financial Services and Amitim Senior Pension Funds, will purchase the stake for a total of $50 million. This includes a $45 million upfront payment and a $5 million deferred payment, contingent upon certain conditions due by 2025. The Sunlight cluster consists of operational and pre-construction solar projects, featuring a 69 MW solar generation capacity and 448 MWh of energy storage, encompassing 5% of Enlight’s Israeli capacity. Enlight stands to recognize a significant profit from the sale and will continue its role as the operator and developer of projects within the cluster. In addition, commercial agreements grant Enlight exclusive rights to purchase all electricity produced by the cluster under a 20-year agreement. The transaction requires approval from the Israeli Competition Authority and includes terms that allow investors substantial influence over future partnership decisions. Both Harel and Amitim seek to diversify their investment portfolios in renewable energy and enhance their contributions to environmental sustainability. The deal was advised by several legal and consulting firms, including Herzog Fox & Neeman, Giza Singer Even, and the Piron law firm.
Sectors
- Renewable Energy
- Investment Management
- Financial Advisory
Geography
- Israel – The Sunlight cluster of projects is located in Israel, impacting the local energy infrastructure and economic landscape.
Industry
- Renewable Energy – The transaction revolves around the solar generation and energy storage capacity of the Sunlight cluster, emphasizing the renewable energy sector.
- Investment Management – Harel Insurance Investments and Amitim Senior Pension Funds are institutional investors seeking to diversify their portfolios through renewable investments.
- Financial Advisory – The involvement of multiple advisory firms such as Herzog Fox & Neeman indicates the role of financial and legal advisory in this transaction.
Financials
- $114 million – Valuation of the entire Sunlight Cluster.
- $50 million – Total investment by Harel and Amitim in 44% of the Partnership.
- $45 million – Upfront cash payment received for the sale.
- $5 million – Deferred consideration to be paid upon fulfillment of certain conditions.
- $94 million – Profit recognized by Enlight upon finalization of the deferred payment.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Enlight Renewable Energy | Seller, Operator | Company | A leading company in renewable energy, selling a 44% stake in its Sunlight cluster projects. |
| Harel Insurance Investments & Financial Services Ltd. | Buyer | Company | The largest insurance and finance group in Israel acquiring a 25% stake in the partnership. |
| Amitim Senior Pension Funds | Buyer | Company | One of the largest institutional investors in Israel acquiring a 19% stake in the partnership. |
| Herzog Fox & Neeman | Legal Advisor | Company | Law firm providing legal advice to Enlight on the transaction. |
| Giza Singer Even | Financial Advisor | Company | Consulting firm advising Enlight on the transaction. |
| Piron Law Firm | Legal Advisor | Company | Law firm advising Harel and Amitim on the transaction. |
| Escola Consulting Firm | Financial Advisor | Company | Consulting firm advising Amitim on the transaction. |
| Israeli Competition Authority | Government Regulatory Body | Government | Responsible for approving the transaction regarding competition law. |