The Adani Gadot Group, which won the state tender to privatize the Port of Haifa, has announced that it concluded an agreement on Sunday to finance its purchase of the Port.
The Group received several financing offers from several banking consortiums in Israel and abroad, and selected the offer made by a group led by Mizrahi Tefahot Bank.
The group, which includes Meitav Investments and the State Bank of India, will provide the Adani Gadot Group a NIS 1.7 billion two-year loan.
Aiming to avoid high interest payments over their 30-year concession, the Adani Gadot Group chose to proceed with a short-term. The remainder of the funds necessary for completing the purchase will be self-financed.
“I am very pleased that this very important Milestone in investment in Haifa Port Company and in Israel in general, is progressing well and as planned,” said Karan Adani, CEO OF APSEZ. “I’m sure this is only the beginning of a much larger relationship for us in Israel and investment in the region.”
The Adani Gadot Group has concluded the financial closure and is on track to proceed with the takeover of Haifa port per schedule, the company said.
“We thank Mizrahi Tefahot Bank Meitav Investments and the other financing bodies that have joined and shown faith in our vision for the development of the Port of Haifa,” Gadot CEO Opher Linchevski said in a statement.
“The financing offers we received show that even during this period of times Adani and Gadot enjoy financial capabilities unparalleled by the standards of the Israeli market and a high level of trust by financial establishments in Israel and abroad.
“These financial capabilities will allow us to bring our vision for the Port of Haifa into fruition and turn it into Israel’s leading port, a port that will become the preferred gateway for cargo arriving from the Far East and departing for the west.
“The Gadot Group could not have chosen a more suitable partner than the Adani Group, which has the required experience thanks to its vast holdings of seaports, airports, and green energy projects around the world. The Adani Group, with its financial stability and valuation of over $200 billion, together with Gadot’s experience and knowledge, will allow us to maximize the returns from port assets.”
The Gadot Group is owned by the Tene Fund and Value LBH Group and was founded 63 years ago. Gadot, managed by CEO Ofer Linchevski and Chairman Dr. Ariel Halperin, has become a force within the field of import, transport, storage and sales of chemicals and oils in Israel, Germany, Belgium and Holland through skillful mergers and acquisitions.
The biggest chemicals depot owned by Gadot is located in Belgium. Gadot also owns and operates Pi Glilot near Tel Aviv and operates a fleet of 14 tankers.
The Indian Adani Group is owned by Gautam Adani, the third wealthiest man in the world. The Adani group has significant holdings in various sectors including thermal and solar energy, ports, mines, cement, power plants and owns the Mumbai Airport in India, the second biggest airport in India.
The Adani Group is also the largest producer of solar energy and the second largest producer of renewable energy. The Group is expected to invest approximately $70 billion into renewable energy projects by 2030.
The Port of Haifa is the largest in handling passengers and cruise ships, and the second largest in Israel in its container handling capability.