Phoenix to invest in PowerGen at NIS 3.25b valuation

Phoenix Finance invests NIS 234 million in PowerGen for a 7.2% stake, with plans to raise it to 12.4% by converting financing. The investment values PowerGen at NIS 3.25 billion, up from NIS 1.26 billion in 2024. This is part of Generation Capital's acquisition of Shikun and Binui Energy, with additional institutional investments expected.

Phoenix Finance is investing NIS 234 million in PowerGen, a subsidiary of Generation Capital, for a 7.2% stake. Phoenix will also convert previous financing for Polish projects into equity, raising its stake to 12.4%. This investment values PowerGen at NIS 3.25 billion, a sharp increase from NIS 1.26 billion at the end of 2024. The deal is part of Generation Capital's planned acquisition of Shikun and Binui Energy for NIS 4.45 billion. Additional institutional investors are expected to invest NIS 500-800 million, bringing total investment to NIS 734 million to 1 billion. PowerGen has grown significantly, including the Reindeer power plant valued at NIS 1.8 billion and the Bezeqgen household electricity supplier with over 100,000 customers. Phoenix previously held stakes in energy assets but sold them, and this marks its return to the sector.