Nofar in talks to acquire energy company Highlight for 100-150 million NIS

Heating up in the mergers and acquisitions sector of the local energy market. Calcalist has learned that Nofar Energy, controlled by Ofer Yanai, is in advanced negotiations to acquire the energy company Highlight for a valuation of 100-150 million NIS.

Although Highlight is attracting interest and other entities in the market are eyeing it, Nofar has a clear strategic advantage: the company has signed a memorandum of understanding that includes an exclusivity period to execute the deal. However, the market emphasizes that since the company's project pipeline is considered significant relative to its size, it is not impossible that another entity will eventually carry out the acquisition if the current contacts do not ripen into a binding agreement.

Highlight was originally founded by three young entrepreneurs who received funding from the southern construction contractor Gabi Buskila. The company's home base operates from Netivot, where the company "Buskila Brothers," of which Gabi serves as CEO, is also located. The family construction company operates throughout the country, mainly in the south (Eilat, Ashkelon, Dimona, and Sderot) alongside projects in the north, for example in Kiryat Motzkin. About two years ago, the company won a tender from the Israel Land Authority in Migdal HaEmek to build 196 apartments, and at the end of 2025, it won a tender in Ma'ale Adumim to build 105 apartments for rent, for which it paid 33 million NIS for the land. Along the way, Buskila increased his hold on Highlight and reached a 92.5% stake. This means that if and when the deal with Nofar is completed, he is expected to receive more than 100 million NIS in cash.

Highlight has been looking for a buyer for nearly a year. It was even close to signing with Shikun & Binui Energy, but the latter itself fell into a sale process and was eventually acquired by the Generation Capital fund for a valuation of 4.45 billion NIS. Operationally, Highlight is still a company without active income-generating projects. Its main asset is a pipeline of projects in the stages of construction and initiation of solar panels for energy production and storage at extra-high voltage. The total of these projects is expected to stand at a total capacity of 300 to 400 megawatts.

The planned acquisition is supposed to be carried out by the local arm, "Nofar Israel," managed by Nadav Barkan. The potential acquisition comes against the backdrop of an especially stormy week for the company. Just last week, Nofar Israel signed a giant deal to acquire 47.5% of the "Reindeer" power station for 855 million NIS. Reindeer, which will be built near Kfar Saba, will have a capacity of 865 megawatts and will be operated using natural gas. It is expected to begin commercial operation in 2030.

The operational momentum is translated directly into value for shareholders. Nofar Israel reached a valuation of 2.3 billion NIS (post-money), following an investment of 200 million NIS from the Meitav investment house. This is a 44% jump in value compared to the deal the company made at the beginning of the year with Clal Insurance. Ofer Yanai, who recently returned to the CEO chair of Nofar Energy, is leading a line based on a model of rapid acquisition, development, and realization of assets.