Nofar expands in Europe and enters the wind energy sector: will acquire projects for up to 672 million euros
Nofar Energy has signed a memorandum of understanding to acquire a renewable energy project portfolio in Europe for up to 672 million euros, marking the company's first entry into the wind energy sector.
Following the acquisition of Highlight and Reindeer in Israel and expansion in the USA, Nofar Energy is scaling its operations in Europe. The renewable energy company, managed by controlling shareholder Ofer Yanai (26.8%), has entered into a binding memorandum of understanding for the acquisition of a portfolio of renewable energy projects in Europe at a total cost of 590 to 672 million euros, depending on the completion of agreed milestones.
The deal includes a consideration of 230 million euros, alongside an additional 80 million euros contingent on meeting specific milestones. Of this, 30 million euros will be paid in cash, with the balance settled through the allocation of shares in the subsidiary, Nofar Europe, should it go public. In parallel, Nofar will assume the projects' debt, which amounts to approximately 360 million euros in the company's share.
Portfolio Structure
The acquisition includes installed and income-generating wind projects with a capacity of approximately 766 megawatts in Western and Northern Europe (the company's share is 393 megawatts). Approximately 85% of this capacity is backed by long-term PPA agreements. Additionally, the deal includes:
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Solar facilities ready for grid connection with a capacity of approximately 110 megawatts (expected connection by early 2027).
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A portfolio of projects ready for construction or in advanced development stages, totaling approximately 1.7 gigawatts (including 280 megawatts of capacity and 560 megawatt-hours of storage in Germany).
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A portfolio of approximately 5.3 gigawatts in early initiation stages.
The deal is subject to regulatory and financing approvals. The acquisition cost and debt, excluding the conditional consideration, are estimated to be more than 10% lower than the average cost of constructing similar capacity in Europe. Completion of this deal is expected to double Nofar's portfolio of connected projects on the continent and mark its entry into the wind energy sector. Nofar, currently valued at 7.5 billion shekels, has seen its stock rise by 70% year-to-date.
