Deal struck at $1.18 bn: Concession to remain until 2054
BBN Bureau
AHMEDABAD/July 15-2022: A consortium of Adani Ports and Special Economic Zone Ltd (APSEZ) and Israel’s Gadot Group has won the tender to privatise the Port of Haifa, the second largest port in Israel.
Through the winning bid, the Adani-Gadot consortium has secured the rights to buy 100 per cent shares of Haifa Port Company Ltd.
The concession period of the Port of Haifa remains up to 2054. “This is one of the many steps we are taking to transform APSEZ into a global transport utility that will include logistics and warehousing,” said Karan Adani, wholetime director & CEO, APSEZ.
Adani group views this win as strategic from several dimensions, as it gives the group a much larger presence in Israel, one of India’s most strategic partners, with whom the Adani Group has been working for six long years to build a network of relationships across several industries.
“In the short term, we look forward to developing strategic trade lanes between our ports in India and Haifa and help facilitate trade between the two countries, diversifying the port cargo as well as leveraging our expertise to increase the operational efficiencies,” a statement from the group said.
Adani Group said it intends to fund its portion of investment through internal accruals.
“Our partnership with Adani blends the best of two worlds – our expertise in handling cargo in Haifa Port and Adani’s world class capability in managing port operations,” he said.
Haifa Port Company Ltd (HPC), for which APSEZ and Gadot made their successful bid, operates the Port of Haifa, one of the two biggest commercial ports in Israel.
The port, which handles nearly half of Israel’s container cargo, is also the country’s principal port for passenger traffic and cruise ships.
APSEZ to control 70 pc in consortium
The consortium of APSEZ and Gadot Group was formed with their respective shares of 70 per cent and 30 per cent. The consortium’s offer was NIS 4.1 Bn, equivalent to $1.18 billion. With the acquisition of the Port of Haifa, APSEZ will expand its footprint into the European port sector, which includes the lucrative Mediterranean region.
The Port of Haifa is located towards the north of Israel. It is close to the city of Haifa, the third largest city in Israel. It is also one of the major industrial areas of Israel. Haifa Port is operated by the Haifa Port Company Ltd, which also has real estate available for the development of office spaces, hotels, tourism and other recreational activities.
