Ormat mulls selling power stations stake

Ormat could make $150-250 million from the sale of a stake in its geothermal power stations business.   

Sources inform ”Globes” that Ormat Industries Ltd. (TASE: ORMT) is considering selling a large chunk of its power station business to financial institutions. He added that these power stations generate stable, long-term cash flows, and that various parties are interested in a deal.

Ormat’s management said in conference calls last year that it is considering selling some of its business to raise cash for investing in other activities. Ormat could make $150-250 million from the sale a substantial stake in its power stations business.

Ormat is due to make an announcement on the subject today, but the source said that there were no advanced negotiations or pending deal.

In February, Ormat, controlled by the Bronicki family and FIMI Opportunity Funds, appointed Isaac Angel as the CEO of the company and its operating subsidiary Ormat Technologies Inc. (NYSE: ORA). He will take up his post on July 1, succeeding Yehudit Bronicki, who founded the company with her husband, Yehuda, 50 years ago.

Published by Globes [online], Israel business news – www.globes-online.com 

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