Sunflower Sustainable Investments Ltd (TASE:SNFL) signed a Memorandum of Understanding to acquire Afcon Renewable Energy Ltd from Afcon Holdings Ltd (TASE:AFHL) in an enterprise value approximately ILS 190 million on August 10, 2025. Under the terms, an exchange of cash payment of approximately ILS 85 million and the allocation of Sunflower shares to the Company. The values and the cash consideration being adjusted for investments and transactions made and/or to be made by either party from January 1, 2025 until the date of signing the detailed agreement, if signed. In Within the framework of the Memorandum of Understanding, it was agreed that one director from Afcon Holdings will be appointed to the Sunflower Board of Directors.

The completion of the transaction is conditional on receiving approval from the authorized bodies of the parties, regulatory approvals (approval of the Competition Commissioner, approval of the Stock Exchange for the registration of the shares to be issued in the transaction and receipt of pre-rolling from the tax authorities), and approvals from third parties required for the transaction, including institutional investors who have established a limited partnership together with Afcon Renewable Energies, approvals from the banks financing the parties and approvals from property owners for Afcon Renewable Energies projects, to the extent required. As per the announcement dated September 28, 2025 the parties agreed to extension of the validity of the Memorandum of Understanding for an additional 90 days from the date of signing the extension, in order to complete the due diligence and advance the detailed agreement between the parties.