Solar energy co Gilatz buys 7 more Italian facilities

Gilatz Investments Ltd. (TASE: GLTS) has signed two letters of intent to buy seven solar energy parks in Italy for �25.8 million (about NIS 128 million). The solar energy parks will produce seven megawatt/hours of electricity altogether. Gilatz will sign binding contracts after conducting due diligence on the parks.

The letters of intent follow several agreements and letters of intent signed by Gilatz in recent months for the purchase of solar energy parks in Italy for NIS 108 million. Those facilities will generate five megawatt/hours altogether.

The seven solar energy parks are under construction, and cover 213,000 square meters altogether. Gilatz plans to sign an operating and maintenance contract for the parks with local companies.

The solar energy parks are eligible for the Italian government subsidy of �0.346 per kilowatt/hour of electricity generated by photovoltaic technology. The subsidy is guaranteed for 20 years from the start of the facilities coming on line.

Aharon Biram and Gil Deutsch each own 22.7% of Gilatz. Gilatz's share was unchanged at NIS 13.06 in morning trading today, giving a market cap of NIS 430 million.

Published by Globes [online], Israel business news - www.globes-online.com - on April 26, 2010

Solar energy co Gilatz buys 7 more Italian facilities

The letters of intent follow other deals signed by Gilatz recently for the purchase of solar energy parks in Italy.