Shapir Engineering Sells Gas Distribution Operations to Allied Group for NIS 230 Million

By דורון אביגד

Translated & summarized from Ice by baba

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Hebrew · 3 newsrooms covering

Shapir Engineering has signed a binding agreement to sell its natural gas distribution operations to Allied Group for NIS 230 million. The deal, which is expected to generate a profit of NIS 50-100 million for Shapir, includes the sale of two subsidiary companies. Allied Group, a major Israeli holding company, will acquire full ownership, with potential for additional payments related to future state revenues. The transaction is subject to regulatory approvals and is expected to be completed within 120 days, though Shapir cautions that finalization is not guaranteed.

The story in 5 lines · by baba

Shapir Engineering will sell its natural gas distribution companies to Allied Group for NIS 230 million.
The deal is expected to yield Shapir a pre-tax profit of NIS 50-100 million.
Allied Group is a major Israeli holding company with diverse investments in infrastructure and energy.
The transaction is contingent on regulatory approvals from the Ministry of Energy and Competition Authority.
Shapir has granted Allied Group a five-year option to purchase residual asset value rights for NIS 130 million plus interest.

Shapir Engineering Sells Gas Distribution Operations to Allied Group for NIS 230 Million — Editorial illustration generated by baba News, not a photograph of the event.

Shapir Engineering announced on Monday that it has signed a binding agreement to sell its entire holdings in two natural gas distribution companies for NIS 230 million. The company estimates it will record a pre-tax profit of NIS 50-100 million from the transaction, based on its financial data as of the end of June 2026. The deal was executed through Shapir's subsidiary, Shapir Civil and Marine Engineering, with an unnamed Israeli infrastructure and energy company.

The sale includes all shares of Super N.G. Natural Gas Distribution Company and Super N.G. Hadera and HaEmekim Natural Gas Distribution Company, both fully owned by Shapir. The buyer has been identified as Allied Group, a major private holding company in Israel with diverse interests in automotive, real estate, infrastructure, and energy. Allied Group is managed by Chairman Yitzhak Suari and CEO Gary Suari and also has activities in logistics, energy, and infrastructure, including stakes in the Carmel Tunnels, Maman, and renewable energy.

The NIS 230 million payment includes the transfer of capital notes and the repayment of owner loans provided by Shapir to the companies being sold. The final sum will be subject to adjustments based on the companies' debt and cash balances at the time of closing. Additionally, the agreement includes provisions for potential future payments from the state, related to gas distribution tariff increases, license extensions, or the residual value of distribution network assets at the end of license periods.

Allied Group also holds an option to purchase Shapir's rights to the future payment for the residual asset value for NIS 130 million, plus 9% annual interest from the agreement date until exercise. This option is valid for five years from the deal's completion. The transaction represents progress on a memorandum of understanding Shapir reported in April. However, the deal's completion is contingent on several conditions, including approval from the Minister of Energy and the Natural Gas Authority for the change in control, approval from the Competition Authority if required, and consent from other third parties. If these conditions are not met within 120 days, with a possibility for extension, either party may cancel the agreement. Shapir emphasizes that there is no certainty the sale will be finalized at this stage.