Shikun & Binui CEO Amit Birman on the Massive Energy Sale and New Strategy
Shikun & Binui CEO Amit Birman discusses the strategic sale of its energy arm for 4.45 billion NIS, the company's shift to contracting, and its financial turnaround.
Shikun & Binui CEO Amit Birman recently completed a massive 4.45 billion NIS deal to sell its subsidiary, Shikun & Binui Energy, to Generation Fund. This transaction marks the conclusion of the company's transition period and signals a sharp strategic pivot. Two years ago, controlling shareholder Nati Saidoff ousted the former CEO Tamir Cohen in a bitter public feud. Birman, previously the CFO, officially took the helm in December 2024, and since then, Shikun & Binui’s market capitalization has surged by 35% to 10 billion NIS.
Birman’s stated target is to double the company's valuation by 2030, and he firmly believes that selling an energy company right in the middle of the artificial intelligence revolution is not a mistake. In his first extensive interview since taking office, Birman outlines his strategy. "The most important thing I did at Shikun & Binui, beyond tactical moves, was deciding on a clear strategy — that we are first and foremost a contractor, and only then do we add a service arm," he explains.
Moving From Defense to Offense
Reflecting on the excessive leverage that plagued the group in the past, Birman notes that previous management became intoxicated by low interest rates. "People thought low interest rates would last forever, but risks materialize. We are now deep in the correction phase. We are moving from defense to offense. Until now, we dealt with many problems, and now we are launching into business development," he says.
The Infrastructure and Real Estate Strategy
The company has strategically shifted its contracting focus from heavy infrastructure to residential construction, where profitability is higher and risks tied to state projects are lower. However, Birman emphasizes that Shikun & Binui is not abandoning infrastructure entirely, pointing to massive upcoming metro projects and strategic acquisitions like elevator and systems companies to capture high-margin maintenance contracts.
"To generate value in the evolving energy market, you need to invest massive amounts of equity, which we lacked. Selling the energy company right at the time the market is exploding is the most rational thing to do."
Commenting on the massive land reserves held by the residential arm—enough for 33,000 apartments—Birman estimates the real estate subsidiary's value at 7 to 9 billion NIS, far above current market pricing, keeping an initial public offering (IPO) on the horizon when market conditions align.
