Keystone, Generation in bidding war for Shikun & Binui Energy

The battle to buy Shikun & Binui Energy is hotting up. Keystone Infrastructure Fund (TASE: KSTN) have filed a NIS 4.35 billion bid to buy Shikun & Binui Energy – outbidding the NIS 4.2 billion offer from Generation Capital (TASE: GNRS).

As part of the bid, Keystone is offering to pay Shikun & Binui Energy shareholders the full amount of the deal, without contingent consideration mechanisms and future milestones. Keystone also notes that, unlike the competing offer, their offer is not conditional on raising capital, raising debt or adding partners, and that the company has the financial capacity and sources of financing required to complete the transaction in full.

Keystone, managed by Dr. Navot Bar, has extensive energy operations through its subsidiary Keystone Power. This includes holdings in three power plants: Ramat Hovav, Hagit and IPM, with a total capacity of 2,300 megawatts (Keystone’s share is 450 megawatts). In addition, the company is a partner in the construction of three additional power plants, Sorek, Atarot and Hagit 2, with a total capacity of 2,700 megawatts.

Keystone believes that the fact that they are Shikun & Binui’s partners in the Ramat Hovav and Hagit power plants gives the deal a high degree of certainty in receiving all the regulatory approvals required for its completion. Among other things, given that Keystone already owns Shikun & Binui’s two main energy assets.

Now, the proposal will be put before the Shikun & Binui Energy board of directors, which will have to decide between them, in order to maximize shareholder value. The company, managed by Yuval Skornik, which is currently controlled by the Shikun & Binui Construction and Infrastructure Group (67%), has a backlog of electricity generation projects with a current scope of 3.2 gigawatts. This is through holdings in the Ramat Hovav, Orot Pnina (Hagit) and Etgal power plants, as well as a backlog of renewable energy and energy storage properties.

Will Generation Capital improve its offer?

Keystone’s offer comes after last month Generation Capital, managed by Yossi Singer and Erez Balasha, announced the signing of a memorandum of understanding (MOU) to acquire the activity for NIS 4.2 billion, with the option of an additional payment of NIS 300,000 conditional on meeting milestones related to advancing existing substantial projects of Shikun & Binui Energy.

To finance the deal, the fund joined a group of institutional entities that will invest in PowerGen as part of the move, if it is completed. In addition, Generation Capital recently received a request from income producing real estate company Summit, controlled by Zohar Levy, which is currently examining an investment of NIS 600 million in Generation Capital, which will likely be directed towards the deal. However, at this stage, it has not been determined what Levy’s share, if any, will be in the deal if it goes through.

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The market believes Generation Capital’s proposal will face a major obstacle in the form of the regulator. Sources at the Electricity Authority tells “Globes” that it is unlikely that the merger of Shikun & Binui Energy and Generation Capital will be approved as is and that in order to make it possible, the merged company will be required to put up for sale some of its production facilities.

In the eyes of the Electricity Authority, the planned move would create a player that is too large (providing over 20% of electricity in Israel, and over 30% of private electricity production according to the Electricity Authority’s data for June 2025) comparable in size to the current leading player – Edeltech, controlled by Uri Adelsburg. This is, in part, because the merged company will control 3 of the 4 power plants that were privatized from the Electricity Authority: Orot Pnina (Hagit East), Ramat Hovav and Alon Tavor.

Published by Globes, Israel business news – en.globes.co.il – on June 15, 2026.

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