Posted on October 11, 2023
Gautam Adani-led Adani Ports and SEZ acquired the Haifa port earlier this year for a total consideration of $1.18 billion
The stock price of Adani Ports was down 5 percent after the day’s closing on October 9 over mounting concern for the fate of the Haifa Port, which the Gautam Adani-led company controls in northern Israel after the Hamas-led attack on Israel triggered a geopolitical instability in the region. The company had acquired the port in northern Israel earlier this year for a total consideration of $1.18 billion.
“We are closely monitoring the action on the ground which is concentrated in South Israel, whereas Haifa port is situated in the North. We have taken measures to ensure the safety of our employees and all of them are safe. We remain fully alert and prepared with a business continuity plan that will enable us to respond effectively to any eventuality,” said a spokesperson from the firm.
In a media statement, Adani Ports and SEZ added that the overall contribution of Haifa to the firm’s numbers is relatively small, with the Israeli port only contributing 3 percent of the total cargo volume. “For the current financial year (Apr 23-Mar 24), we have guided for Haifa Cargo volumes range of 10-12 MMT and APSEZ’s total cargo volume guidance of 370-390 MMT. In the initial six months (Apr-Sep 23), APSEZ’s total cargo volume was ~203 MMT, of which the Haifa share is ~6 MMT. We stay confident of APSEZs business performance,” said the firm.
Last year, a consortium of Adani Ports and Gadot Group won the tender to privatise the Haifa Port, with the Adani Group holding a 70 percent stake in the consortium. The port is one of Israel’s major seaports and is responsible for the majority of the country’s imports and exports.