The Government Companies Authority today published notices of the beginning of the process for selling Israel Military Industries Ltd. (IMI) to a private investor. In the notices in the Israeli and foreign press, the state directs investors interested in taking part in the IMI privatization process to contact the Government Companies Authority to obtain the relevant information. The Authority and the Ministry of Defense official in charge of security will later conduct separate inquiries about the financial soundness of potential bidders in order to safeguard the state's security interests in the company.
The Government Companies Authority plans to complete the proceedings for selling the company to a private investor by late 2015 or early 2016. The company is designated for sale as a single unit, except for its ultrasensitive activities, which will continue in the framework of a new government defense company to be established - Tomer Systems.
Following the move by the Government Companies Authority, IMI Workers Committee chairman Itzhak Yehuda today asked Authority director Ori Yogev to refrain from opening the tender for the sale of the company to financial investors. "We dread the sale of the company to financial investors, who will have only quick profits in mind. Financial investors won't think about developing the company. They won't develop the human resources, and won't consider Israel's essential security interests," Yehuda wrote. "Our consent to privatization of the company was given under the assumption that all parties wanted the company sold to a strategic investor, who would act to develop the company and in favor of the state's security interests."
Under the Government Companies Authority's plan, information rooms will be opened this summer, and detailed information about the company's financial situation and activity will be shown to investors who have passed the financial and security checks. As part of the selection procedures for investors expressing interest in the company, the candidates' economic strength will be examined, so that they will be able to maintain the company as a going concern. The honesty and integrity of the participants will be probed, while making sure that they do not have a conflict of interest with Israel in their business. Admittance of investors to the information rooms will require the deposit of a NIS 6 million bank guarantee.
Published by Globes [online], Israel business news - www.globes-online.com - on March 5, 2015
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