Ellomay Capital, a renewable energy project developer in Europe, the U.S., and Israel, announced that it had executed an agreement to sell its holdings in the 9 MW Talmei Yosef Solar facility in Israel to Greenlight Fund Limited Partnership and Doral Group Renewable Energy Resources, in equal parts, in consideration for NIS44.75 million (~$12.2 million).
The agreement also provides for an additional potential payment of up to NIS4 million (~$1.09 million) if the solar facility generates more than 18 million kWh during 2024.
The agreement provides for a cutoff date of June 30, 2023, and the company will be entitled to all revenues of the Talmei Yosef Facility up to such date, net of expenses for the period.
It allows for customary exceptions with a cap of NIS9 million (~$2.46 million) and is limited to a period of 18 months from the closing date.
The solar facility is located in southern Israel, which currently is in the middle of a war zone. The entities have specified one of the conditions for closing as the end of the war in southern Israel and that the Talmei Yosef Facility be physically accessible.
Following the sale, the company will maintain the rights to the two projects under development located in the vicinity of the Talmei Yosef Facility: (i) a solar facility intended for 10 MW solar and 22 MWh battery storage capacity and (ii) a battery storage facility intended for approximately 400 MWh.
The completion of the sale is subject to various customary conditions to closing, including receipt of regulatory approvals and the consent of the financing entity of the Talmei Yosef Facility.
All conditions to closing are required to be fulfilled within a period of 90 days from execution of the agreement, which can be extended to up to 150 days under certain circumstances.
According to Mercom’s 9M and Q3 2023 Solar Funding and M&A Report, in the first nine months (9M) of 2023, there were 166 project acquisitions for 31.6 GW compared to 207 projects for 52.1 GW in 9M 2022.