ORIX’s $627 Million Acquisition of an Ownership Stake in Ormat from FIMI and Bronicki Investments

Davis Polk is advising the special committee of the board of directors of Ormat Technologies, Inc. in connection with the acquisition of an approximately $627 million ownership stake in Ormat by ORIX Corporation from FIMI ENRG Limited Partnership, FIMI ENRG, L.P., Bronicki Investments, Ltd., and senior members of Ormat management, representing, in the aggregate, an approximately 22.1% ownership position in Ormat.

In connection with the transaction, Ormat and ORIX will enter into a strategic partnership providing Ormat with certain commercial rights to global geothermal energy projects pursued by or presented to ORIX and granting ORIX certain corporate governance and shareholder rights at Ormat. The transaction, which was approved by the Ormat board of directors upon the unanimous recommendation of the special committee, is subject to customary closing conditions and regulatory approvals and is expected to close in the third quarter of 2017.

Ormat is a leading geothermal company and the only vertically integrated company engaged in geothermal and recovered energy generation. Ormat owns, operates, designs, manufactures and sells geothermal and recovered energy generation power plants primarily based on the Ormat Energy Converter, a power generation unit that converts low-, medium- and high-temperature heat into electricity. Ormat has engineered, manufactured and constructed power plants, which it currently owns or has installed, for utilities and developers worldwide, totaling 2,200 MW of gross capacity. Ormat’s current generating portfolio of 727 MW is spread globally in the United States, Kenya, Guatemala, and Guadeloupe. ORIX, an integrated financial services group, provides a broad range of commercial and consumer finance products and services to corporate and retail customers in Japan and overseas.

The Davis Polk corporate team includes partner William H. Aaronson (Picture) and associate Arthi Sridharan. Partner Andrew Ditchfield is providing litigation advice. Partner Jeffrey P. Crandall is providing executive compensation advice.

Involved fees earner: William H. Aaronson – Davis Polk & Wardwell; Arthi Sridharan – Davis Polk & Wardwell; Andrew Ditchfield – Davis Polk & Wardwell; Jeffrey Crandall – Davis Polk & Wardwell;

Law Firms: Davis Polk & Wardwell;

Clients: Ormat Technologies Inc.;


Author: Ambrogio Visconti