Ellomay Capital to sell 49% of Italian solar portfolio to Israeli investor

Ellomay Capital (ELLO) entered into an investment agreement with Clal Insurance, an Israeli institutional investor, and several of its affiliates, for an aggregate investment by Clal of approximately EUR52M. Clal and Ellomay will set up a new Israeli limited partnership in which an entity wholly-owned by Ellomay will be the general partner and Ellomay will hold 51% of the limited partner interests and Clal will hold the remaining 49%. The Israeli LP will wholly-own a newly founded Luxembourg entity, to which Ellomay’s wholly-owned subsidiary, Ellomay Luxembourg, will transfer all of the issued and outstanding shares of seven Italian project companies, who hold a solar portfolio in an aggregate capacity of approximately 198 MW. Project finance agreements were executed with respect to the Italian Solar Portfolio in March. The Clal Agreement provides that upon consummation of the transactions contemplated by the Clal Agreement, Ellomay and Clal will sign a partners agreement and Ellomay will issue Clal a warrant. The consummation of the transactions contemplated by the Clal Agreement is subject to the fulfillment or waiver of several customary conditions to closing, including receipt of regulatory approvals, that are not entirely within the control of Ellomay, Ellomay Luxembourg, Clal or the Israeli LP.