Ellomay Capital Increases Stake in Dorad Energy to 33.75% with Bank Loan Funding

Ellomay Capital Ltd. has increased its stake in Dorad Energy to 33.75% through the acquisition of an additional 15% of shares. The acquisition was funded by a bank loan agreement and strengthens Ellomay's position in the energy sector, particularly in Israel. A legal challenge by Edelcom regarding the sale was rejected by the court, with further proceedings scheduled for August 6, 2025.

Ellomay Capital Ltd. has expanded its stake in Dorad Energy Ltd. to 33.75% by acquiring an additional 15% of shares. The acquisition was facilitated by exercising a right of first refusal related to shares sold by Zorlu Enerji. The purchase, valued at approximately NIS 424 million (around €108 million), was financed through a structured bank loan agreement consisting of three tranches.

The acquisition strengthens Ellomay's position in the energy sector, particularly in Israel, where Dorad operates one of the country's largest private power plants. The acquisition was made through Ellomay Luzon Energy Infrastructures Ltd., a subsidiary of Ellomay Capital. The financing arrangement includes strict covenants and operational restrictions, demonstrating a well-structured approach to capital management and risk mitigation.

However, the acquisition is not without potential risks. The financing agreement includes significant loan obligations, which could increase financial risk and liability for Ellomay if market conditions worsen. Additionally, ongoing legal proceedings initiated by Edelcom Ltd. could lead to complications in shareholder agreements and potential disputes affecting Dorad's management.

Ellomay Capital continues to focus on renewable energy projects, and this acquisition aligns with its ongoing commitment to expanding its portfolio in the energy sector. The deal is subject to certain financial covenants and operational restrictions, and a court hearing is scheduled for August 6, 2025, to address legal challenges by Edelcom.

References:
[1] https://www.nasdaq.com/articles/ellomay-capital-ltd-announces-acquisition-15-stake-dorad-energy-ltd