Local investors were joined on Zoom conference held as part of the privatization tender process. Participants included among others representatives of UPS.
The Government Companies Authority plans to privatize the Israel Postal Company which was halted due to Israel’s repeated elections and the delay in forming a government.
Now, The Israel Postal plans to sell 40% of the company’s shares. 20% of the company to a strategic investor. Another 20% will be offered on the Tel Aviv Stock Exchange.
The privatization of The Israel Postal has already received the necessary approvals from the Government Companies Authority and the government.
Privatization at the COVID-19 crisis with great uncertainty on the financial markets carries quite a risk.
The government is yet to finalize future regulations which will have a direct impact on Israel Postal Company valuation. These regulations include how many post office branches the new company could close, whether it would require to serve the entire country with unified prices, and would the government fix the price of stamps.
In addition, interested investors will have to deal with a major problem, which is the obligation to provide universal service which imposes costs of about NIS 60-70 million annually.
According to Globes, the investor’s conference held by the Government Companies Authority about the company and the tender process included representatives of UPS, an American multinational package delivery company, and local investors such as Fortissimo Capital, Bezeq Israeli Telecommunication, Melisron Ltd., Gama Management & Clearing, the Kedma Fund, Cukierman Logistics, chairman of the Aluma Fund.
Read more about: Israel Postal Company, privatization, TENDER
