Ormat Jumps Most in Two Weeks on Shareholder Talks to Sell Stake

Ormat Industries Ltd. (ORMT) gained the most in two weeks as the developer of geothermal power plants said its controlling shareholder is in advanced talks to sell part of its stake.

The shares jumped 2.4 percent to 16.93 shekels at the 4:30 p.m. close in Tel Aviv. The stock has fallen 32 percent in the past 12 months compared with a 14 percent drop for the TA-100 Index.

The Bronicki family, which has a 35 percent stake in the company, is in talks with Fimi Opportunity Funds, which holds 10.5 percent. A deal would give the two shareholders equal stakes in the company, Ormat said in a statement to the Tel-Aviv Stock Exchange today.

“The news is good,” Guil Bashan, an analyst at the Tel Aviv-based I.B.I.-Israel Brokerage & Investments Ltd., said by phone today. “It will mean an end to the infighting and the management-ownership situation that has been weighing on the company and on the share price,”

Ormat Industries’ U.S. unit, Ormat Technologies Inc. (ORA), said Jan. 30 that revenue will decline by almost $25 million in 2012 and 2013. The unit’s contracts with California power plants were affected by a decrease in gas-price forecasts and the delay of the state’s greenhouse-gas cap-and-trade program, which is now expected to begin in 2013, Ormat Technologies said.

To contact the reporter on this story: Gwen Ackerman in Jerusalem at gackerman@bloomberg.net

To contact the editor responsible for this story: Claudia Maedler at cmaedler@bloomberg.net

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