Doral Group Renewable Energy Resources (TASE: DORL) (Doral Group), which builds and operates renewable energy systems in Israel and the US, reported a memorandum of understanding (MOU) this morning on a capital investment of $400 million by a third party in its US subsidiary Doral LLC.
The investment completes the equity required by the company for carrying out projects totaling 2 gigawatts in the US at a cost estimated at $2 billion.
RELATED ARTICLES
Former Mossad chief’s pay at Doral US unit NIS 24m
The investor will take a stake of between 30% and 49% in Doral LLC, to be determined in accordance with a forthcoming fund-raising round by the company. A mechanism will be agreed between Doral LLC’s existing owners that will preserve the value of the stakes of Doral Group and Migdal and maintain the value of Doral Group’s holding in the US subsidiary at $400 million. On the day the investment deal is completed, Doral Group and Migdal will buy participation units in Doral LLC for an aggregate $15 million at this valuation.
Doral Group, a pioneer of solar energy in Israel, is headed by Jacob (Yaki) Noyman. The company was floated in 2020 at a pre-money valuation of NIS 575 million, 12% below the valuation the company had hoped for. Since then, its market cap has risen to NIS 1.6 billion. The company began to do business in Europe, and established itself in the US with projects amounting to 15.5 gigawatts, more than three times its total output in Israel. It is now embarking on a huge project in Indiana that will eventually supply 1.6 gigawatts of power to some 275,000 households.
Doral Group’s share price is currently up by over 12% on the Tel Aviv Stock Exchange.
Doral Group chairperson Doron Davidovitz said, “This is an extremely significant deal for Doral Group, in the size of the investment, in the value derived from it, and in its strategic consequences. It establishes Doral LLC’s status among the leading renewable energy entities in the US, reflects the confidence of the international investment institutions in Doral, and will enable us to accelerate considerably the execution of our work plan in the US. We are very proud of this deal and of the confidence that it reflects in Doral, and believe that it will be a further stage in the expansion of the company in the US market.”
Published by Globes, Israel business news – en.globes.co.il – on March 17, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.