Edeltech buys Turkish co’s Ashdod – Ramat Negev Energy stake

Edeltech Group announced that it has signed an agreement to acquire Zorlu Energy's entire stake in Ezotech Electric, the joint venture through which Edeltech and Zorlu own power plants through Ashdod Energy and Ramat Negev Energy. The joint venture has cogeneration production licenses and a total electricity production capacity of 190 megawatts, in addition to related industrial services provided to nearby factories. To date, Edeltech and Zorlu own 57.85% and 42.15% of Ezotec Electric respectively. Upon completion of the transaction, which is subject to various conditions, including obtaining regulatory approvals and approvals of relevant bodies, the Edeltech Group will own a 100% stake in both power plants.

Zorlu Energy has notified the Turkish Stock Exchange that the total amount it will receive for the sale of its rights in Ezotech Electric is NIS 127 million. According to Zorlu, the deal represents another step in a series of deals it implemented inside and outside Turkey, to sell its activity in gas-fired power plants. But the timing of the deal cannot be ignored, at a time when Turkey is imposing a trade embargo on Israel for the first time, and relations between the two countries are witnessing a serious crisis. After completing the current deal, Zorlu will remain active in the field of private electricity production in Israel, through its acquisition of 25% of the Dorad Power Station, which is working to increase the scope of its production capacity in the coming years.

“A strategic step from Edeltech”

The Ramat Negev power station has been operating on natural gas since 2016, and is located next to the Adama plant in the Neot Hovav industrial zone. The station has a joint production license and has a production capacity of 126 megawatts. In addition, the plant provides industrial services including steam, water treatment and compressed air to nearby factories in the Neot Hovav Industrial Park.

The second station, Ashdod Energy, is located next to the Aghan station (also affiliated with the Adama Group) in the Ashdod Industrial Zone, which has been operating since 2015. The station has a co-production license and has a production capacity of 64 megawatts. In addition to the Ramat Negev Power and Ashdod Power plants, the Edeltech Group also owns and operates (alone or with other partners) the Orot Yosef Power Plant in Ramat Hovav, Orot Pnina (Hagit East) and Dorad Power.

“The acquisition of Zorlu’s stakes in Ramat Negev Energy and in Ashdod Energy is a strategic move to strengthen the control and flexibility of the Edeltech Group,” said Edeltech Group Executive Vice President Nev Sevier. “This is a strategic move by the Edeltech Group, which has matured into a deal over the past year.” . Edeltech Group thanks Zorlu for the good partnership in these power plants for more than 15 years and for the continued partnership in the Dorade Power Plant.

Zorlu Energy CEO Sinan Ak added, “As a global company, with investments in different regions around the world, we also have natural gas power plants in Israel. In accordance with our strategy of investing in renewable energy sources in parallel with the changing needs of our world, we have been working since… We need some time to sell our gas activity, without harming our investors.”

Edeltech Group was represented in the transaction by Advs. Mike Raymond, Doreen Bendos and Jonathan Gazit of Metar Law Firm. Zorlu Energy is represented by Advs. Michel Lifton Citbon, Yigal Binyamini, and Daniel Amitai of the Goldfarb Gross Seligman law firm.

Published by Globes, Israel Business News – en.globes.co.il – on May 30, 2024.

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