Shares of Adani Ports & Special Economic Zone Ltd. rose on Friday as a consortium led by Adani Ports and Gadot Chemical Tankers & Terminal Ltd won a tender floated by the Israel government for the purchase of Haifa Port.
On the National Stock Exchange, the share price of Adani Ports increased by 4.85 rupees (0.67%) to close the market at 7729.30. On Thursday, the stock of Adani Port had closed at 724.45.
As of 15/07/2022 total market capital of Adani Ports & Special Economic Zone Ltd. is 1,54,05,537.97 (lakh rupees)
Adani Ports gets Haifa Port
Port of Haifa situated at the Bay of Haifa is one of the largest international seaports in Israel with an annual cargo tonnage of 29.53 million tons (as of 2018) and an Annual container volume of 1.46 million TEU (as of 2018).
As the government of Israel decided to sell 100% of the equity in the port through a tender, a consortium mainly led by Ahmedabad-based Adani Ports and Israeli chemical giant Gadot Chemical Tankers & Terminal Ltd decided to get buy Haifa entirely.
According to a statement by Adani Ports & Special Economic Zone Ltd., 70% of the stake in Haifa Port Company belongs to APSEZ while other 30% is owned by Gadot Group.
Both of the companies in the consortium plan to privatise the port company soon after the final procedures are completed related to the deal.
According to a statement by the finance ministry of Israel, the tender was won by the consortium for 4.1 billion New Israeli Shekel ($1.2 billion). The decision to privatise the port company and its assets is part of the government’s objective to bring overall reforms in the management of the local ports in Israel. Reforms are also expected to help increase competition and efficiency in the management of the ports.
Chief Executive Officer of Gadot Group, Opher Linchevski, said that the partnership between Gadot and Adani would be a perfect business blend. According to him, world-class capability of Adani Ports to manage port operations and Gadot Group’s expertise in the area of handling cargo at Haifa port would certainly increase the efficiency of working of the port.
According to Karan Advani, CEO of APSEZ, the decision to buy Haifa port was one of many steps of the largest shipping and logistics company in India to transform itself into a global transport utility.
With the acquisition of Haifa Port, APSEZ now has access to the shipping and port industry in the European market, including the busy shipping lanes of the Mediterranean Sea.
The acquisition of Haifa Port also means that Adani Ports would now be competing with another port terminal in Haifa controlled by Shanghai International Port Group (SIPG). SIPG is owned by the government of China.
