Ellomay Capital Ltd. Acquires 15% Stake in Dorad Energy Ltd.

Strategic Insights -

Tel-Aviv based Ellomay Capital Ltd. has announced the completion of the acquisition of 15% of the outstanding shares of Dorad Energy Ltd. by its subsidiary Ellomay Luzon Energy Infrastructures Ltd. on July 22, 2025. The acquisition was made possible by exercising the right of first refusal granted to Ellomay Luzon Energy and other Dorad shareholders in connection with a sale of the shares by Zorlu Enerji Elektrik Uretim A.S. The total consideration for the shares was approximately NIS 424 million, funded by bank financing provided to Ellomay Luzon Energy.

Key Takeaways:

  • Ellomay Luzon Energy acquired 15% of Dorad's outstanding shares by exercising the right of first refusal, with Ellomay Luzon Energy and Edelcom Ltd. each signing an agreement to purchase 7.5% of Dorad's shares. Due to non-fulfillment of conditions, Edelcom's agreement was terminated, and Ellomay Luzon Energy acquired the entire 15%.
  • The total consideration for the shares was approximately NIS 424 million, funded through bank financing consisting of three tranches with different interest rates and repayment terms.
  • The Loan Agreement provided by the lender includes a first-ranking fixed pledge on Ellomay Luzon Energy's rights to an account where amounts due from Dorad will be deposited.
  • Ellomay Luzon Energy granted the lender a pledge on its shares of Dorad to secure the loan, with the agreement allowing for early repayment of the First and Third Loans without an early repayment fee and the Second Loan subject to payment of fees.
  • The Loan Agreement includes customary immediate repayment provisions, including breach of an undertaking by Ellomay Luzon Energy, a deterioration in Ellomay Luzon Energy's financial situation, and the initiation of legal proceedings in connection with the Dorad shares.
  • Ellomay Capital Ltd. is a renewable energy and power generator and developer of renewable energy and power projects in Europe, the USA, and Israel.
  • Ellomay Luzon Energy, a subsidiary of Ellomay Capital Ltd., has acquired a significant stake in Dorad Energy Ltd., one of Israel's largest private power plants, with a production capacity of approximately 850 MW.
  • Ellomay is investing in various renewable energy and power sectors worldwide, including solar power plants in Spain, anaerobic digestion plants in the Netherlands, and solar projects in Italy and Texas, USA.

Statistics:

  • NIS 424 million: Total consideration for the shares acquired by Ellomay Luzon Energy
  • 15%: Stake acquired by Ellomay Luzon Energy in Dorad Energy Ltd.
  • 7.5%: Stake that Ellomay Luzon Energy and Edelcom Ltd. each signed an agreement to purchase
  • NIS 175 million: Amount of the First Loan, bearing annual interest in the range of +0.5% to -0.5% of the Israeli Prime Rate
  • NIS 175 million: Amount of the Second Loan, bearing fixed annual interest rate between 5% and 6%
  • NIS 70 million: Amount of the Third Loan, bearing annual interest rate in the range of +0.5% to -0.5% of the Israeli Prime Rate
  • 335.9 MW: Operating solar power plants in Spain
  • 850 MW: Production capacity of Dorad Energy Ltd.'s power plant
  • 160 MW: Total capacity of solar projects in Italy, which commenced construction processes
  • 134 MW: Total capacity of solar projects in Italy, which have reached "ready to build" status
  • 27 MW: Total capacity of solar projects in the Dallas Metropolitan area, Texas, USA, connected to the grid
  • 22 MW: Additional solar projects in the Dallas Metropolitan area, Texas, USA, awaiting connection to the grid

Sources:

  • Ellomay Capital Ltd. press release, July 22, 2025, GlobeNewswire
  • Ellomay Capital Ltd. website, About page
  • Ellomay Capital Ltd. annual report on Form 20-F, filed with the Securities and Exchange Commission.