The agreement for transferring control of IMI Systems Ltd. (IMI) to Elbit Systems Ltd. (Nasdaq: ESLT; TASE: ESLT) has been signed by Prime Minister and Acting Defense Minister Benjamin Netanyahu.
Outgoing Defense Minister Avigdor Liberman did not sign the transfer of control in IMI to Elbit Systems before his resignation, even though the documents were already prepared and all related matters were settled. Elbit Systems will acquire IMI from the state for NIS 1.9 billion.
The signing was scheduled for last week, but was postponed due to the fighting in the south, and later because of the political drama surrounding Liberman's resignation as minister of defense.
Earlier today, Minister of Finance Moshe Kahlon signed the transfer of control from the state to Elbit Systems. Defense market sources predicted that Netanyahu would also sign the agreement in the near future.
A debate scheduled for today in the Knesset State Control Committee on the privatization of IMI was cancelled. The debate was initiated long ago by Committee chairperson Shelly Yachimovich (Zionist Union) following the findings in the State Comptroller's report published three months ago about defects discovered in the privatization process. Liberman was scheduled to attend the meeting as Minister of Defense to present the defense establishment's position on matters pertaining to the propriety of the process. Whether a new debate will be scheduled is unclear.
Published by Globes, Israel business news - en.globes.co.il - on November 19, 2018
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