Businessman Tzachi Abu Moves to Acquire Control of Turbogen

• Turbogen is in negotiations to acquire a 50% stake in Elbatech from Abu Yehiel, a company controlled by Tzachi Abu.
• The transaction reflects a valuation of approximately ILS 1.2 billion for Elbatech; the consideration will be paid via share allotment, resulting in Tzachi Abu holding a ~55% stake in Turbogen and becoming its controlling shareholder.
• This strategic move underscores an absolute vote of confidence in Turbogen's growth trajectory as it shifts from development to serial production.

TEL AVIV, Israel, May 26, 2026 /PRNewswire/ -- Turbogen Ltd. (TASE: TURB) (the "Company"), a technology company operating in the field of local and distributed generation of energy, electricity, and heat, announced this morning a dramatic strategic move that will reshape the Company. The Company is currently conducting negotiations to acquire a 50% stake in Elbatech Ltd., currently held by "Abu Yehiel – Construction Company Ltd.", a company controlled by businessman Tzachi Abu.

The proposed transaction reflects an implied company valuation for Elbatech of approximately ILS 1.2 billion, with the acquired shares valued at approximately ILS 600 million. Under the terms of the deal, the consideration to the seller will not be paid in cash, but rather through the allotment of Turbogen shares. Upon completion of the move, Tzachi Abu is expected to hold approximately 55% of Turbogen's share capital, making him the controlling shareholder of the Company.

Tzachi Abu's decision to structure the transaction through a share allotment—giving him control over Turbogen—demonstrates his unwavering confidence in the Company's business potential and its strategy to become a leading technology company in the energy sector.

This move is not Abu's first step with Turbogen. It follows a previous expression of trust in November 2025, as reported in the media, when he acquired shares in the Company totaling approximately ILS 10 million. The current move aligns with Turbogen's ongoing growth process as it is in the midst of transitioning from the development stage to manufacturing, alongside the development and implementation of advanced solutions for comprehensive energy resource management, and in the process of listing its shares on NASDAQ.

Upon the execution of a binding agreement and completion of the transaction, Turbogen is expected to restructure its operations and operate through two primary divisions: Turbogen's existing core operations and the Elbatech division, thereby creating substantial synergy between both units.

Synergy and Joining Forces with Defense-Tech Giant Elbatech Elbatech, which is indirectly held in equal parts by Israel Aerospace Industries Ltd. (IAI) and Abu Yehiel (controlled by Tzachi Abu), is considered a leading integrator in the defense, aerospace, and high-tech markets. The company provides advanced development, engineering, manufacturing, and logistics services to both defense and civilian industries.

Yaron Gilboa, CEO of Turbogen, stated: "We are at a historic turning point for Turbogen. The combination of our existing energy operations with Elbatech's engineering prowess, logistical capabilities, and leading position in the defense and civilian sectors will create a massive growth engine and extraordinary synergy. The deep vote of confidence from businessman Tzachi Abu, who will become a strategic controlling partner, is direct evidence of Turbogen's technological and business potential, and underscores the confidence in our ability to lead the distributed energy market in Israel and globally."

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SOURCE Turbogen Ltd.