The government plans selling a 49% stake in the company, which handles hazardous waste.
The Ministerial Committee on Privatization has approved the flotation of the Israel Environmental Service Company (ESC) on the Tel Aviv Stock Exchange. According to the Government Companies Authority plan, the state will sell a 49% stake in the company which handles hazardous waste.
The privatization is designed to inject capital into the company and improve its corporate governance.
The company valuation is estimated between NIS 250 million to NIS 300 million. ESC has 140 employees and is one of the most profitable government companies. In 2019, the company reported a net profit of NIS 20 million.
Minister of Environmental Protection Gila Gamliel said, "ESC handles all types of hazardous waste in Israel and is therefore a strategically important company. The proposed plan of an IPO to sell a minority stake to the public will ensure continued control by the government together with the business advantages of becoming a public company, improve business orientation and company performance, strengthen corporate governance and increase transparency."
Published by Globes, Israel business news - en.globes.co.il - on October 1, 2020
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Gila Gamliel / Photo: Rafi Kotz , GPO