Adani Ports and Gadot Group wins tender to privatise Israel's Haifa Airport; stock rises

15 Jul 2022 , 12:20 PM

Adani Ports and Special Economic Zone Ltd (APSEZ) and Israel’s Gadot Group have won the tender to privatize the Port of Haifa, Israel’s second largest port, despite stiff competition from local and international players.

The Adani-Gadot consortium won the right to buy 100% of Haifa Port Company Ltd. through the winning bid. The Port of Haifa’s concession period runs until 2054.

Haifa Port Company Ltd (HPC) is one of Israel’s two largest commercial ports. The port, which handles nearly half of Israel’s container cargo, is also the country’s main passenger and cruise ship port.

“Needless to say, we are overjoyed to have won the Port of Haifa privatization tender, and this is just one of 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, Adani Ports & SEZ.

APSEZ and Gadot Group formed a consortium with 70% and 30% stakes, respectively. The consortium’s offer was NIS 4.1 billion, or USD 1.18 billion (approx. Rs9,427 crore).

Adani Ports and Special Economic Zone Ltd will expand its footprint into the European port sector, which includes the lucrative Mediterranean region, with the acquisition of the Port of Haifa.

The Port of Haifa is located in northern Israel. It is located near Haifa, Israel’s third largest city. It is also one of Israel’s major industrial areas. The Haifa Port Company Ltd operates the port and has real estate available for the development of office spaces, hotels, tourism, and other recreational activities.

At around 12.24 PM, Adani Ports & SEZ was trading at Rs727.90 up by Rs2.7 or 0.37% from its previous closing of Rs725.20 on the BSE. The scrip touched intraday high and low of Rs739.90 and Rs726 respectively.