real estate, financial services, infrastructure

Infrastructure

 

Through Tahal Group, Kardan N.V. is active in the infrastructure business and operates as a leading international engineering company, specializing in water-related infrastructure projects and water-related asset ownership. Tahal Group has participated in the planning, development, design, construction, and management of thousands of projects in over 50 countries across five continents. Tahal Group’s advanced technical resources include a staff of approximately 1,900 employees, including engineers and scientists in a wide variety of disciplines.

 

Within the framework of restructuring the infrastructure companies, it was decided to have all project activities under one subsidiary, Tahal Group B.V. (Tahal Projects), and all assets-related activities under Tahal Group Assets B.V. (Tahal Assets). This went into effect on April 1, 2008.

 

Tahal Projects engages in two basic types of projects: construction projects (EPC) and design projects. EPC projects are projects that include planning, procurement, management, and construction, as well as financing arrangements. EPC projects are usually in the field of water supply, desalination, wastewater treatment, and agriculture. Design projects include planning, design, project management, and construction supervision in a wide variety of fields, including water supply, waste and wastewater treatment, desalination, water resource planning, solid waste management, and agricultural planning.

 

Tahal Projects’ design and EPC projects are located in Africa, Israel, Asia, Central and South America, and Eastern Europe.

Tahal Assets invests in water-related assets such as municipal water systems, desalination plants, wastewater treatment plants, and hydropower plants. Tahal Assets is mainly operational in China via Kardan Water International Group (KWIG), Israel, and Turkey.

 

www.tahal.com 

 

2010 Outlook

 

In the (Water) Infrastructure division, due to completion of wastewater treatment plants in China in 2009 and 2010 and the backlog increases for the design, engineering, and construction activities, management expects an improvement in operating profit in 2010.

Regarding the 2010 investment activities, Tahal Group International is in the process of raising capital to an amount of approximately EUR 70 million. On July 15, 2010 an agreement was signed with FIMI, an Israeli private equity fund, pursuant to which FIMI undertakes to provide Tahal a loan of up to USD 50 million (approx. EUR 40 million). In exchange, FIMI will receive warrants in an amount of up to USD 50 million  to purchase an equity stake in Tahal based on  a pre-money company valuation for Tahal which shall be the lower of a) USD 250 million plus interest or b) 25% discount on the company valuation at an exit (such as an IPO).

 

 

KWIG: www.kwigwater.com