175 Million Euro Deal: Israeli Giant Acquires Hundreds of Solar Projects in Europe
The Israeli financial giant is entering into a strategic partnership to acquire hundreds of income-generating solar projects abroad, most of which are already connected to the power grid and secured by long-term hedging mechanisms.
Solair Renewable Energy announced today the signing of a binding agreement to acquire an extensive solar portfolio in Poland, in partnership with Clal Insurance. The deal, estimated at approximately 175 million euros, includes projects with a total capacity of about 268 megawatts.
The portfolio consists of about 219 solar projects, with over 90% of them already connected to the power grid. The acquisition will be carried out through a dedicated Polish company, in which Solair will hold 51% and Clal Insurance 49%. According to estimates, in an average year of operation, the projects are expected to generate revenues of about 27.6 million euros, an EBITDA of about 18.4 million euros, and an FFO of about 15.7 million euros.
Of the total consideration in the deal, about 63 million euros will be paid by the purchasing company, and the balance, about 112 million euros, will be financed through long-term loans from leading European banks. The projects benefit from high stability thanks to long-term hedging mechanisms for electricity sales for a period of 15 years, which apply to about 70% of the projects and reduce exposure to market price volatility.
Alon Segev, CEO of Solair, stated:
"The acquisition of the solar projects in Poland, together with Clal Insurance as part of a long-term strategic partnership, significantly increases our income-generating portfolio in Europe, while yielding a double-digit return on equity, alongside the potential for operational, financial, and commercial improvement of the projects over the years, among other things, through the future addition of storage systems."
As part of the deal, Clal Insurance received options to purchase 3% of Solair's share capital, exercisable for 18 months at a premium of 13% relative to the share price at the beginning of August 2026. The completion of the final deal is expected during the fourth quarter of the year.
