Bronicki family selling big chunk of shares in Ormat Industries

Galena 2 plant, United States (source: Ormat)
Alexander Richter Alexander Richter 7 Jul 2011

To service debt of up to US$176 million, the Israeli Bronicki family is planning to sell shares in Ormat Industries worth "hundreds of millions of shekels". Today the family is controlling shareholders of Ormat Industries (mother company of Ormat Technologies).

Reported this morning in the media in Israel, “geothermal company Ormat Industries Ltd. (TASE: ORMT) controlling shareholders the Bronicki family are in talks with Shikun u’Binui Holdings Ltd. (TASE: SKBN), controlled by Shari Arison to sell shares in their company worth hundreds of millions of shekels. (100 million shekels equals around US$30 million)

The Bronickis need to cover a debt of NIS 600 million (US$176 million) to Bank Hapoalim (TASE: POLI), which they have owed since the start of the year.
Ormat reported to the Tel Aviv Stock Exchange, “The sides have not reached agreement about the terms of the deal and there is no certainty that negotiations will continue between them or that a deal will be signed.”

Shikun u’Binui said that any deal would be for “substantial amounts.” IBI Investment House analyst Shay Lipman believes that if the deal is completed then Shikun U’Binui will become the largest shareholder in Ormat and will subsequently take leading positions in senior management. He said, “Ormat combines excellently with Shikun U’Binui’s portfolio. They can create good synergy in their overseas activities.”

Ormat’s share price fell 2.1% in afternoon trading on the TASE to NIS 23.81.”

Source: Globes