Gilatz Investments Ltd. (TASE: GLTS) has signed an agreement with a third party, whose identity it did not disclose, to build a 2-megawatt solar park in Italy. The deal was signed through a subsidiary in which Gilatz owns a 90% stake.
Gilatz's subsidiary is due to complete the acquisition of the solar park's licensee and landowner within a few days.
The solar park is due to be completed later this year and will be hooked up to the Italian national grid. Upon completion, the solar park will be eligible for the Italian government's 20-year subsidiary of €0.346 per kilowatt/hour on electricity sales. The tariff will be lower if the solar park is not connected to the grid in 2010.
Gilatz expects that 85% of the solar park's estimated €900,000 annual revenue will be operating profit.
Gilatz, controlled by Ronny Biram and Gil Deutsch, has already bought a number of solar parks under construction in Italy, and is also building solar parks in Spain.
Gilatz's share price rose 0.8% in morning trading today to NIS 13.20, giving a market cap of NIS 432 million.
Published by Globes [online], Israel business news - www.globes-online.com - on July 27, 2010
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