Shikun u'Binui Holdings Ltd. (TASE: SKBN) unit Solel Boneh International Ltd. has signed a large contract with the Azerbaijan Ministry of Transport to rebuild a highway in the country. The three-year project is worth $337 million. This is the company's first project in the Azerbaijan.
Solel Boneh International will widen and upgrade a 156-kilometer stretch of the M4 highway, which runs between the Black Sea and the Caspian Sea. The contract covers the Azeri stretch of the highway from the capital Baku to Shamakhi. The project includes rebuilding of bridges along the route. The Azeri government and three commercial banks are financing the project.
Shikun u'Binui said that the Azeri project was another step in the expansion of the company's business and the winning of mega-projects in other countries, in addition to the countries where is already operates.
Shikun u'Binui CEO Ofer Kotler said, "This road project is a milestone in the realization of the company's strategy to expand its business in new countries, and reflects the company's ability to carry out mega-projects."
Arison Holdings Ltd. owns 48.4% of Shikun u'Binui, which wholly owns Solel Boneh International through Shikun u'Binui Solel Boneh Building and Infrastructure Ltd. Shikun u'Binui's share rose 1.8% in morning trading to NIS 6.86, giving a market cap of NIS 2.7 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on December 27, 2009
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