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Ongoing Story· Today

Shapir Engineering Sells Gas Distribution to Ellied for $63 Million

2 developments

GlobesEconomy

Shapir Engineering Sells Gas Distribution Firms to All-Ways for $60M

Translated & summarized from Globes by baba

BusinessNeutral tone

Hebrew · Sole source

Shapir Engineering has agreed to sell its natural gas distribution companies, Super NG and Super NG Hadera and HaEmekim, to investment fund All-Ways for NIS 230 million. The deal is expected to yield Shapir a pre-tax profit of NIS 50-100 million and is part of its strategy to focus on core infrastructure and industrial activities. The transaction is pending necessary regulatory approvals, including from the Minister of Energy and the Competition Authority, and is anticipated to be finalized in the coming months.

The story in 6 lines · by baba

  • Shapir Engineering will sell its natural gas distribution firms to All-Ways for NIS 230 million.
  • The sale is expected to generate a pre-tax profit of NIS 50-100 million for Shapir Engineering.
  • All-Ways has an option to purchase Shapir's share of future salvage value for an additional NIS 130 million plus interest.
  • The transaction is subject to approvals from the Minister of Energy and the Competition Authority.
  • Shapir recently secured significant investments in its infrastructure concession projects.
  • The acquired companies hold licenses for natural gas distribution in central and northern Israel until 2034 and 2038.

Shapir Engineering has signed a binding agreement to sell its entire holdings in two natural gas distribution companies, Super NG and Super NG Hadera and HaEmekim, to investment fund All-Ways for NIS 230 million (approximately $60 million) in cash. The deal, which follows a due diligence period and a memorandum of understanding signed in April, is subject to regulatory approvals.

Upon completion of the transaction, Shapir Engineering may consider increasing its 10% stake in the Ashdod Oil Refinery (Bazei). Shapir expects to record a pre-tax profit of NIS 50-100 million from the sale, depending on final adjustments and contingent payments. All-Ways has also been granted a five-year option to purchase Shapir's share of future salvage value payments, which would involve an additional NIS 130 million plus 9% annual interest.

The sale is part of Shapir's strategy to divest mature assets and reinvest capital into its core infrastructure and industrial operations. Shapir recently secured investments from Migdal, Amitim, Clal, and Meitav in a partnership for three of its concession projects, including Highway 6 North, Highway 16, and the Fast Lane, valuing the partnership at approximately NIS 950 million.

Super NG holds a license to distribute natural gas in central Israel from Netanya to Gedera, with its license expiring in 2034. Super NG Hadera and HaEmekim covers the Hadera and HaEmekim regions, with its license expiring in 2038. Shapir acquired full control of these ventures in October 2022 for about NIS 50 million.

GlobesOther · Rishon LeZion

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