Adani Group led consortium to privatise Haifa port in Israel

New Delhi: A consortium of Adani Ports and Special Economic Zone (APSEZ) and Gadot Group has won the tender to privatise the Port of Haifa in Israel for USD 1.18 billion (about Rs 9,422 crore).

Through the winning bid, APSEZ said the Adani-Gadot consortium has secured the rights to buy 100 per cent shares of Haifa Port Company Ltd.

According to an APSEZ statement, the concession period of the Port of Haifa remains up to 2054 and Adani Ports and Gadot Group hold 70 per cent and 30 per cent stakes, respectively in the consortium.

"The consortium's offer was NIS 4.1 Bn, equivalent to USD 1.18 billion,"it added.

NIS (New Israeli Shekel) is the currency of Israel.

Commenting on the development, APSEZ CEO and Whole-time Director Karan Adani said this is one of the many steps the company is taking to transform APSEZ into a global transport utility that will include logistics and warehousing.

He said this win gives APSEZ a much larger presence in Israel, one of India’s most strategic partners, with whom the Adani Group has been working for six years to build a network of relationships across several industries.

CEO of Gadot, Opher Linchevski said,"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." According to the statement, Haifa Port Company, for which APSEZ and Israel's Gadot Group 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, it added.

With the acquisition of the Port of Haifa, APSEZ said the company 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.

APSEZ, the flagship transportation arm of the diversified Adani Group, is India's largest private ports and logistics company.

Gadot Group is owned by two private equity investment funds – Tene Capital and Value LBH Infrastructure Fund.