ORIX to Acquire $627 million Ownership Stake in Ormat

Ormat Technologies announced that ORIX will acquire $627 million (22.1%) ownership stake in Ormat. Orix will be purchasing 11.0 million shares of Ormat common stock from FIMI ENRG Limited Partnership, FIMI ENRG, L.P, Bronicki Investments, Ltd. and senior members of management, representing in the. The per share sale price to be paid by ORIX at closing is $57, FIMI and Bronicki reached agreement on the commercial terms of their transaction. The parties expect closing to occur in the third quarter of 2017.

Under terms of a new Commercial Cooperation Agreement between the two companies, Ormat will have exclusive rights to develop, own, operate and provide equipment for ORIX geothermal energy projects in all markets outside of Japan. In addition, Ormat will have certain rights to serve as technical partner and co-invest in ORIX geothermal energy projects in Japan. ORIX will have the right to designate three persons to be appointed to an expanded nine-person Ormat board of directors and also propose a fourth person to be mutually agreed by Ormat and ORIX to serve as a new independent director on the Ormat board. In addition, for so long as ORIX is entitled to board representation, ORIX will be subject to certain customary standstill restrictions, including an effective 25% cap on its voting rights. ORIX will assist Ormat in obtaining project financing for its geothermal energy projects from a variety of leading providers of renewable energy debt financing with which ORIX has relationships in Asia and around the world. ORIX will also have certain customary registration rights with respect to the shares of Ormat common stock that it will own.

Ormat’s CEO, Isaac Angel said that Following the meetings and discussions he had with ORIX’s management in the last several weeks, he is confident that this significant cooperation agreement will support their strategic plan to expand their geographical footprint as well as technological and customer base. They expect that the comprehensive capabilities and track record of Ormat together with ORIX’s commitment to expanding the scope of its geothermal and other renewable energy activities will accelerate our growth. I look forward to leading our cooperation with ORIX on future opportunities.