The ministerial privatization committee will discuss and approve an offering of shares in Israel Aerospace Industries (IAI) within two weeks, a meeting attended by the government agencies involve in the measure decided today.
Prime Minister and Minister of Defense Benjamin Netanyahu was also involved in the decision to bring the plan for the offering to the cabinet for approval within two weeks, sources inform "Globes."
Netanyahu and Ministry of Defense director general Maj. Gen. (res.) Ehud (Udi) Adam are scheduled to meet tomorrow to discuss aspects of the IAI offering. The Prime Minister's Office declined to comment on the matter.
A source involved in these steps said that promotion and approval of the measure during the term of a transitional government should not be ruled out, adding that the offering would garner NIS 3-4 billion for the state treasury. It is believed that most or all of this money will be used for the IDF's procurement plans.
The plan formulated by the Government Companies Authority and IAI envisages offering at least 25% of the company's shares to the public at a valuation of at least NIS 12 billion. No regular valuation of the company has been made.
It is believed that the state's need for cash and IAI's latest financial reports, which showed an improvement over the preceding reports, are boosting the motivation of the parties involved to further the plan.
One of the plan's main advocates is IAI chairman Harel Locker, who obtained support from the Government Companies Authority for the measure in the past 18 months.
Published by Globes, Israel business news - en.globes.co.il - on October 30, 2019
© Copyright of Globes Publisher Itonut (1983) Ltd. 2019