Shafir Engineering Sells Gas Distribution Units to Allied Group for 230M NIS
Shafir Engineering signed a binding agreement to sell its natural gas distribution companies to Allied Group for 230 million NIS, expecting a profit up to 100 million NIS.
Shamir Engineering announced it has signed a binding agreement to sell its entire holdings in two natural gas distribution companies for 230 million NIS. The company estimates that upon completion of the transaction, it will record a pre-tax profit and transaction expenses of 50-100 million NIS, based on its financial data as of the end of June 2026.
The agreement was signed yesterday (Monday) through its subsidiary Shafir Civil and Marine Engineering, with an Israeli infrastructure and energy company, whose identity was initially undisclosed. As part of the deal, all shares of Super NG Natural Gas Distribution Company and Super NG Hadera and the Valleys Natural Gas Distribution Company, currently fully owned by Shafir, will be sold.
Buyer Identity and Financial Terms
It was revealed that the buyer is the Allied Group, one of Israel's largest private holding groups, with diverse operations in automotive, real estate, infrastructure, and energy. Allied is managed by Prof. Yitzhak Swary and his son Gary Swary, operating also in logistics and renewable energy, with past holdings including the Carmel Tunnels and Maman.
The consideration also includes the transfer of capital notes and repayment of owner loans provided by Shafir to the sold companies. The final amount will be subject to adjustments based on financial debt and cash balances in the companies upon closing.
Future Payments and Regulatory Approvals
In addition to the base consideration, mechanisms were set for future payments that may be received from the state, including gas distribution tariff hikes, license extensions, or compensation for the grid's asset value at the end of the license periods, known as the "scrap value".
The buyer was also granted an option to purchase Shafir's rights in the future scrap value payment for 130 million NIS plus 9% annually until realization.
The transaction progresses a memorandum of understanding reported by Shafir last April. However, completion remains subject to conditions including approval from the Minister of Energy and the Natural Gas Market Council, Antitrust Authority approval, and third-party consents.
