OPC Energy Ltd. (TASE:OPCE) agreed to acquire 75 MW power plant located in the Kiryat Gat area from Dor Alon Energy In Israel (1988) Ltd (TASE:DRAL), and Dor Alon Gas Power Plants Limited Partnership for ILS 535 million on June 2, 2022. The consideration is subject to adjustments for cash balances and working capital. The consideration is also subject to adjustments in connection with repayment or non-repayment of senior debt extended to the Power Plant as agreed between the parties to the purchase agreement.

The consideration shall be paid on the completion date of the acquisition, except for NIS 200 million (approximately $60 million) (or NIS 300 million (approximately $90 million) in the event of early repayment of certain senior debt of the partnership prior to the completion of the acquisition), which will be paid on December 31, 2023. OPC is expected to fund the acquisition with cash on hand, utilization of credit facilities, equity or debt capital raising, or a combination of the foregoing. The completion of the acquisition is subject to conditions set forth in the purchase agreement, including regulatory approvals and third-party consents.

As of August 24, 2022, the Israel Competition Authority approved the acquisition. The deadline for the completion of this acquisition is March 31, 2023.