Azrieli Group Ltd. (TASE: AZRG) unit Global Environmental Solutions Ltd. (GES) has acquired the 28% stake of Tahal Group International BV in the Palmachim desalination plant for NIS 62 million, giving it full control of the facility company Via Maris.
GES originally owned 28% of Via Maris, which won the 24-year operating BOO (build, operate, own) franchise for the Palmachim desalination plant in 2005. The sale of Tahal's stake in Via Maris is the last sale by Tahal's parent company Kardan NV (TASE: KRNV;AEX:KARD). The sale comes as Via Maris is trying to raise capital to expand the facility.
Azrieli owns GES through Granite Hacarmel Investments Ltd. (TASE: GRNT). Granite Hacarmel CEO Yosef Singer told "Globes", "There is no question that the water industry will become much more important for our general results and will greatly improve our business results."
Via Maris's franchise for the Palmachim desalination plant expires in 2029. It is the only company that agreed to collaborate with the Ministry of Finance's plan to expand Israel's seawater desalination plants, and will expand the Palmachim plant's capacity from 45 million cubic meters of water a year to 90 million at the ministry's price of NIS 2.09 per cubic meter of water. Expanding the plant will cost $100 million, with Bank Hapoalim (TASE: POLI) providing the financing.
Via Maris has a power purchasing agreement with Israel Corporation (TASE: ILCO) subsidiary OPC Rotem Ltd.
Published by Globes [online], Israel business news - www.globes-online.com - on October 4, 2011
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