Phoenix Invests NIS 234 Million in PowerGen at NIS 3.25 Billion Valuation

Phoenix will invest about NIS 234 million in PowerGen for roughly 7.2% of the energy company, valuing it at about NIS 3.25 billion after the transaction. The funds will repay financing Phoenix supplied to PowerGen subsidiaries for renewable-energy projects in Poland. Phoenix will also sell its preferred shares back to Generation Capital and exercise options, leaving it with about 12.4% of PowerGen's ordinary equity when the steps close. Generation Capital expects a pre-tax valuation gain of NIS 270 million to NIS 320 million, while two additional institutional investors signed a nonbinding memorandum for a possible NIS 500 million to NIS 800 million investment.