Israeli military industries up for sale
IMI to be privatized as part of national privatization plan; company expected to sell for NIS 2.5-3 billion.
The State of Israel is looking for a buyer for Israeli Military Industries, and has asked investment banks around the world to help find a buyer. In addition, the government is preparing to brief private investors in two months time on the company as well as requesting for bids.
In the past, the company had been valued between NIS 2.5 to 3 billion ($802.8 million). The company is being sold as is, in one piece.
IMI chairman Udi Adam said, "Privatization of the company is progressing as planned, and is at the point of no return. Our main goal is to carry out privatization at a high monetary value for Israel, while reflecting the company's technological capabilities, knowledge foci, and the quality of its human resources."
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At the beginning of October, Reuters reported that the government decided to issue minority stakes of up to 49 percent in state-owned companies on the Tel Aviv Stock Exchange over the next three years, a move the Finance Ministry said would bring in revenue of 15 billion shekels ($4.1 billion).
The socioeconomic cabinet, headed by Prime Minister Benjamin Netanyahu, approved the proposal, which aims to sell off stakes in Israel's electric company, water provider, railway, post office and defense contractors and pay down the national debt.
The move, which is common in many other Western countries, is also expected to develop and strengthen Israel's capital market, the Finance Ministry said.
"This is another step in stopping the politicization of government companies and reducing corruption in the companies," Finance Minister Yair Lapid said.
Netanyahu said the reform would allow for greater transparency for government companies.
Israel in 2015 will seek to sell a minority stake in Israel Natural Gas Lines and the state postal company and privatize Israel Military Industries, the port of Ashdod, and several smaller companies with proceeds expected at 4 billion shekels.
Among the companies planned for privatization in 2016 are the port of Haifa and Israel Aerospace Industries (IAI), which would bring in revenue of 5 billion shekels.
In 2017, the state aims to privatize defense firm Rafael and Israel Electric Corp (IEC), sales that could net some 6 billion shekels.
The ministry said some companies, such as IEC, IAI, Israel Railways, water provider Mekorot, Israel Post and Rafael, would be sold through the Tel Aviv Stock Exchange while others - the ports and IMI - would be sold at one time or in stages in a private sale.
