Ormat Technologies completes share exchange with parent company
Galena 2 plant, United States (source: Ormat)
Francisco Rojas
13 Feb 2015
Ormat has completed the share exchange transaction with its parent entity, following which, it became a non-controlled public company and its public float increased from approximately 40% to approximately 76% of its total shares outstanding.
In a recent press release, Ormat Technologies, Inc. announced today that further to its news release on November 10, 2014, the Company completed the share exchange transaction with its parent entity, Ormat Industries Ltd. (“OIL”) following which, it became a non-controlled public company and its public float increased from approximately 40% to approximately 76% of its total shares outstanding.
Under the terms of the share exchange, OIL shareholders received 0.2592x shares for each share in OIL, or an aggregate of approximately 30.2 million shares, reflecting a net issuance of approximately 3.0 million shares (after deducting the 27.2 million shares that OIL held in Ormat Technologies). Consequently, Ormat Technologies’ total shares outstanding increased from approximately 45.5 million shares to approximately 48.5 million shares.
Additionally, on February 10, 2015, the Company’s common stock was successfully listed on the Tel Aviv Stock Exchange (TASE). The TASE also confirmed that the Company will be included in the TA-25 Index, which is the TASE flagship index that tracks the share prices of the 25 companies with the highest market capitalization on the exchange. The Company will remain subject to the rules and regulations of the NYSE and of the U.S. Securities and Exchange Commission (“SEC”). Under the local regime for dual listing, the Company will use the same periodic reports, financial and other relevant disclosure information that The Company submits to the SEC and NYSE.
“This transaction helps to streamline Ormat’s corporate structure, and we believe it will significantly enhance the liquidity of our stock, ultimately increasing shareholders value,” commented Isaac Angel, Ormat’s CEO. “We are pleased to start trading on the TASE, and excited to be included in the TA-25 Index. We believe this listing will also increase the interest in Ormat and diversify our investor base.”
