Shikun & Binui Shareholders Approve Shikun Energy Sale for NIS 4.45 Billion
Shikun & Binui shareholders overwhelmingly approved selling Shikun Energy to the Generation Fund for NIS 4.45 billion. The deal requires further regulatory approvals and includes a NIS 300 million penalty clause.
Shareholders of Shikun & Binui approved on Monday evening by an overwhelming majority the sale of Shikun Energy to the Generation Fund. According to Calcalist, 99.99% of shareholders present at the vote and 95.42% of all shareholders of Shikun Energy voted in favor of the deal. Generation, managed by Yossi Singer and Erez Balsha, signed a deal at the end of July to acquire Shikun Energy for NIS 4.45 billion. The transaction involves 100% of the company's shares and its delisting from the Tel Aviv Stock Exchange, thus requiring shareholder approval. Additional required approvals include those from the Electricity Authority and the Competition Authority.
Should the transaction fail to close due to regulatory conditions, Generation will be forced to pay a penalty of NIS 300 million to Shikun & Binui, which holds the controlling stake in Shikun Energy. Shareholders also approved by a large majority grants totaling NIS 5 million for officers at Shikun & Binui Energy and a one-time retention bonus for CEO Yuval Scornik. Shikun & Binui Energy trades at a market capitalization of NIS 3.95 billion, below the transaction price—likely due to the fact that the deal has not yet been approved by regulators and assessments that Generation may be forced to sell some of Shikun Energy's assets.
