Israeli blank check company Ellomay Capital Ltd. (Bulletin Board: EMYCF) signed €4.5 million engineering procurement and construction contracts on Thursday with an Italian contractor for the design, supply, construction, assembly and commissioning of two 750-kilowatt photovoltaic plants to be located in the Marche region in Italy. Ellomay did not disclose the name of the Italian companies.
The contractor will build the photovoltaic plants and connect them to the Italian national grid, in order to sell the electricity to Italy's national energy handler (GSE). Ellomay said that it wwould finance the EPC contracts with a loan from a financial institution, even though it does not lack for cash.
Ellomay's share closed at $0.66 on the Bulletin Board on Friday, giving a market cap of $49 million, 36% less than its cash reserves.
Until three years ago, Ellomay was, known as Nur Macroprinters, one of Israel's wide format digital printer manufacturers, alongside Scitex Vision and Indigo. Nur was unable to survive as an independent company and sold its business to Hewlett Packard Co. (NYSE:HPQ) for $118 million. HP was also the buyer of both Scitex Vision and Indigo.
After Nur Macroprinters settled its debts, it had $79 million in cash, which subsequently declined to $76 million. Former Bank Hapoalim chairman Shlomo Nehama acquired the company together with Ran Fridrich. Hemi Raphael bought Fortissimo Capital's stake in the company, to reach a 31.7% holding - the same as Fridrich and Nehama's holding.
A few months later, RAD Data Communications Ltd. owner Zohar Zisapel acquired a 7.3% stake in Ellomay on the open market. British hedge fund Old Lane Partners owns 6.6% of the company, and serial entrepreneur Michael Weiss, who raised tens of millions of dollars for Keryx Biopharmaceuticals Inc. (Nasdaq: KERX) and XTL Biopharmaceuticals Ltd. (Nasdaq:XTLB); TASE:XTL), owns 5%.
Published by Globes [online], Israel business news - www.globes-online.com - on March 7, 2010
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