Azrieli Group unit Granite Hacarmel Investments Ltd. (TASE: GRNT) is negotiating to buy Ocif Investments and Development Ltd. (TASE: OCIF) stake in the Via Maris Desalination Ltd. consortium, which manages the Palmachim desalination plant.
At present Granite Hacarmel unit GES Global Environmental Solutions Ltd. owns 27.9% of Via Maris, Kardan NV (TASE: KRNV;AEX:KARD) unit Tahal Group 27.9%, Ocif 22.1%, and B. Gaon Holdings Ltd. (TASE: GAON) unit Gaon Agro Industries Ltd. (TASE: GAT) subsidiary Middle East Tube Ltd. (TASE:TUBE) 22.1%.
Negotiations are being conducted, at a company value of NIS 244 million. Therefore, Granite would pay NIS 54 million to effectively increase its holding in the desalination plant to 50%.
In 2002 the consortium won the government tender to plan, finance, build and operate the Palmachim desalination plant, which it has been operating since 2007. The original plan called for a plant which would supply 30 million cubic meters of desalinated water per year. However, in December 2008 an agreement was signed by the government and Via Maris to increase production to 45 million cubic meters of water per year.
Granite Hacarmel CEO Joseph Singer said, "The deal is in line with the growth strategy of expanding in the water sector that the group has set for itself. We expect to receive government approval to double the production capacity of the plant to cope more effectively with the national water crisis, which we see as a national imperative.
Granite's share fell 1% today to NIS 7.32.
Published by Globes [online], Israel business news - www.globes-online.com - on September 6, 2009
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