Ormat Tech Considers Potential Restructuring With Its Parent Company

(RTTNews) - Ormat Technologies Inc. (ORA) announced, following a report to that effect issued today to the Tel Aviv Stock Exchange and the Israeli Security Authority by its parent entity, Ormat Industries, Ltd. or OIL, that the two companies are considering a possible group corporate reorganization.

As per the proposed transaction, Ormat Technologies would acquire OIL by issuing shares of common stock in Ormat Technologies to OIL's shareholders in exchange for all of the OIL shareholders' shares in OIL, based upon an exchange ratio to be agreed upon between the parties. If approved and consummated, the transaction would eliminate OIL's majority ownership interest in, and control of, Ormat Technologies.

The company said it has established a special committee of independent directors with full authority to consider the proposed transaction, including to negotiate the exchange ratio and make a recommendation to the Board of Directors, or to reject the proposed transaction.

The special committee has retained independent legal and financial advisors to assist the committee in considering the proposed transaction.