Gilatz Investments Ltd. (TASE: GLTS) is continuing to expand its solar energy investment in Italy. The company signed a letter of intent to buy a solar park in Italy for €7.1 million, plus VAT. The solar facility is under construction, and will produce 2.02 megawatt/hour when completed.
The letter of intent is binding until May 25, when the parties are due to sign a framework agreement.
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.
Last month, the company signed two letters of intent to buy seven solar energy parks under construction for €25.8 million, which will produce seven megawatt/hours of electricity altogether. Those deals followed previous intent follow several agreements and letters of intent for the purchase of solar energy parks in Italy for NIS 108 million. Those facilities will generate five megawatt/hours altogether.
In a separate development, Gilatz extended the deadline of a letter of intent to buy two solar parks that are under construction by one week until May 17. The solar parks will together produce two megawatt/hours when completed.
Gilatz also owns solar parks under construction or planned in Spain and Israel.
Aharon Biram and Gil Deutsch each own 22.7% of Gilatz. Gilatz's share was unchanged at NIS 12.31 in morning trading today, giving a market cap of NIS 405 million.
Published by Globes [online], Israel business news - www.globes-online.com - on May 13, 2010
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