Ellomay Capital Ltd. (NYSE American: ELLO) (TASE: ELLO), a prominent renewable energy and power developer across Europe, the USA, and Israel, has finalized an agreement to divest its ownership in the 9 MW solar facility situated in Talmei Yosef, Israel.
The sale, outlined in an agreement with Greenlight Fund Limited Partnership and Doral Group Renewable Energy Resources Ltd., will exchange ownership for NIS 44.75 million (approximately $12.2 million). An additional sum of up to NIS 4 million could be earned if the Talmei Yosef Facility surpasses 18 million Kwh production in 2024.
Ellomay Capital will retain revenue rights until June 30, 2023, net of expenses. The agreement includes indemnification for breaches, capped at NIS 9 million for a period of 18 months post-closing.
Closing the deal hinges on customary conditions, including regulatory approvals and consent from the Talmei Yosef Facility’s financing entity, to be fulfilled within 90 days post-agreement (extendable to 150 days under specific conditions).
However, the sale’s completion relies on ending the southern Israel conflict and ensuring physical access to the Talmei Yosef Facility. Moreover, if the ongoing hostilities damage the facility or impact its output, the buyers reserve the right to abort the acquisition.
Post-sale, Ellomay Capital will retain development rights for adjacent projects: a 10 MW solar facility with 22 MW/hour batteries and a 400 MW/hour battery storage facility.
Uncertainties persist regarding the deal’s closure due to conditions beyond the company’s or buyers’ control, compounded by the ongoing conflict in Israel. The impact of these circumstances on the sale’s finalization and purchase price remains uncertain.
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