Clean Tech IL

Ormat (ORA), the Israeli geothermal energy company might be in a mid of takeover battle - so it seems from recent headlines. The company, which grown to represent strong management and strategic thinking in the clean tech industry, suffered from a rocky year and a half, when its stock price change its course number of times.

The mother company was founded at 1965, by Lucian and Yehudit Bronicki, group’s CEO and CTO respectively, and kept its family orientation. Started as a technology company, they successfully transitioned, and now own geothermic power plants. The company technology unit, Ormat Technologies, is traded at NYSE since 2004, with a market cap of 1.76B$.

However, last year was not as successful, which led to investor’s discomfort. Things accelerated when Haim Katzman, owner of Gazit Inc, major Israeli real estate development company, said in an interview that the link between ownership and management is not a crucial element, and is separated in many American companies. This statement, clearly aimed at the holdings of the Bronickis (27.8%), fueled the discussion about the company’s future. The fact that after heavy trading, Gazit owned 17.2% of the company gave a strong signal that Mr. Katzman meant business.

In what some will consider a defensive move, The couple recently promoted their son, Yoram Bronicki to group’s president, replacing Yehudit, who remained as the group’s CEO.

Time will tell if the Bronickis lose control of their company. One thing is certain - Ormat is still an emblem of high level strategic thinking, strong execution, and keen understanding of market dynamics.

You can find an excellent Wallstrip episode on this topic here.

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