The ministerial committee for privatization approved the privatization of Israel Post. Under the scheme presented by the Authority for Governmental Companies, 20% of the shares will initially be auctioned to an Israeli or foreign strategic investor. This was announced by the Globes business newspaper. In the second phase, after two years, an additional 20% of the shares will be offered to the public, and Israel Post will become a public company listed on the Tel Aviv stock exchange. The offer will help the company to become transparent, efficient and profitable in the long run. However, the participation of the state in the company will not fall below 60%. Private investors who buy shares in the initial privatization phase will be guaranteed preferential rights. An agreement will be signed between the state and the buyer that grants the latter a say over the selection of the CEO. The buyer agrees to maintain his participation in the company for seven years. The proposal includes the possibility of selling to the public 40% of the company in the event that the sale to a private investor does not materialize.

The president of Israel Post, Hezi Zaieg, said: “We welcome the great confidence that has been given to us by the ministerial committee, the Ministry of Finance, the Ministry of Economy and Labor, the Ministry of Communications and the Administration of government companies From the signing of the collective agreement with employees in 2015, which defined the road to privatization, we have worked tirelessly to improve our service and improve the financial performance of the company. In the last three years we proved that Israel Post has moved from an organization that delivers letters to a logistics giant with a substantial presence in the online trading market, providing services to international trading platforms”.

Source: medNews