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Zorlu Energy, a subsidiary of Türkiye’s Zorlu Holding, announced Monday that it has completed the sale of its 10% stake in Israel’s Dorad Power Station to Phoenix Group for 282.9 million shekels ($84.5 million) and has agreed to transfer the remaining 15% to existing partners.
In a disclosure to the Turkish Public Disclosure Platform (KAP), this concludes negotiations that began in March to sell Zorlu’s entire 25% stake in the plant and marks its exit from the Israeli market.
The move comes as part of a broader shift by Zorlu Holding, which is facing mounting financial pressures amid rising debt that has pulled the group further into a financial quagmire approaching $4.9 billion.
Alongside the Phoenix Group acquisition, the remaining 15% of Zorlu’s stake in Dorad will be equally purchased by the latter's existing shareholders, Ellomay Luzon Energy Infrastructures Ltd. and Edelcom Ltd., through a pre-emptive right.
Zorlu stated that regulatory approvals for this part of the transaction are still pending, and the bid value for these shares has not been publicly disclosed.
Dorad Power Station is one of the largest combined-cycle natural gas power plants in Israel, with an installed capacity of approximately 840 megawatts (MW).
The plant is majority-owned by Dorad Energy Ltd. Its principal shareholders—prior to the latest transaction—included the Eilat-Ashkelon Infrastructure Services Company (EAPC) with 37.5%, Zorlu Energy with 25%, and both U. Dori Energy and Edelcom Ltd. with 18.75% each.
Zorlu Holding, known internationally through its electronics brand Vestel, is undergoing a restructuring process amid growing financial strain. The group has been hit by rising debt and operational inefficiencies, especially within Vestel.
In 2024, Zorlu Energy reported a net loss of ₺2.36 billion ($72.71 million). Losses widened in the first quarter of 2025, reaching ₺3.32 billion ($91.84 million).
Vestel, the group’s largest brand, also faced severe setbacks with a ₺11 billion ($338.91 billion) net loss in 2024, followed by losses exceeding ₺5 billion ($137.95 billion) in the first quarter of 2025.
In May, Zorlu announced it would lay off around 2,000 employees as part of efforts to improve efficiency and cut costs. Meanwhile, the company denied reports claiming it planned to sell major assets such as the Zorlu Center shopping mall in Istanbul, following speculation about a potential €1.5 billion ($1.75 billion) sale.
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