Zorlu Enerji sells Dorad stake, ends operations in Israel

Zorlu Enerji sells Dorad stake, ends operations in Israel

Zorlu Enerji, a subsidiary of Türkiye’s Zorlu Holding, has completed the sale of its 10% stake in Israel’s Dorad Power Station to Phoenix Group for 282.9 million shekels ($84.5 million) [1]. The transaction, which concluded negotiations that began in March, marks Zorlu Enerji’s exit from the Israeli market. The remaining 15% of Zorlu Enerji’s stake will be equally purchased by existing shareholders Ellomay Luzon Energy Infrastructures Ltd. and Edelcom Ltd. through a pre-emptive right.

The sale comes amidst mounting financial pressures faced by Zorlu Holding. The group is grappling with a debt of approximately $4.9 billion, which has led to a broader restructuring process. Zorlu Energy, a subsidiary of Zorlu Holding, reported a net loss of ₺2.36 billion ($72.71 million) in 2024, with losses widening to ₺3.32 billion ($91.84 million) in the first quarter of 2025 [2].

Dorad Power Station is one of the largest combined-cycle natural gas power plants in Israel, with an installed capacity of approximately 840 megawatts (MW). The plant is majority-owned by Dorad Energy Ltd., with principal shareholders including Eilat-Ashkelon Infrastructure Services Company (EAPC) with 37.5%, Zorlu Energy with 25%, and U. Dori Energy and Edelcom Ltd. with 18.75% each.

The sale of the Dorad stake is part of Zorlu Holding’s efforts to reduce its debt and improve its financial position. The group has also been restructuring its operations, including laying off around 2,000 employees and denying reports of major asset sales such as the Zorlu Center shopping mall in Istanbul.

References:
[1] https://www.turkiyetoday.com/business/turkish-zorlu-energy-exits-israeli-market-with-845m-dorad-stake-sale-3204273
[2] https://www.turkiyetoday.com/business/heavy-losses-mount-across-zorlu-group