There were some unexpected and curious figures at the investors conference held as part of the privatization tender for the Israel Postal Co. including the UPS international shipping and logistics company. At the conference the Government Companies Authority presented details about the company and the tender process ahead of the opening of the information room next month.
Sources inform "Globes" that among those present at the conference were the Fuhrer family who are part of the controlling shareholders of Bezeq Israeli Telecommunication Co. Ltd. (TASE: BEZQ) as well as Bezeq director and businessman Amnon Dick. Also present were representatives of Fortissimo Capital, Melisron Ltd. (TASE: MLSR), the Kedma Fund, Gama Management & Clearing, Cukierman Logistics, and Ori Yogev, chairman of the Aluma Fund and a former head of the Government Companies Authority and a former head of the Ministry of Finance Budget Division. All these local people were joined on Zoom by international organizations including representatives of UPS.
The Government Companies Authority plans privatizing the Israel Postal Co. in two stages by selling 20% to a strategic investor and then floating another 20% on the Tel Aviv Stock Exchange.
However, ahead of any privatization process some major issues remain unresolved. The government is yet to finalize future regulations of the postal sector and those regulations will have a direct impact on Israel Postal Co.'s company value. These regulations include whether the government would fix the price of stamps, how many post office branches the new company could close, and whether the new company would be required to serve the entire country with unified prices.
In addition, the Israel Postal Co. owns a large amount of real estate, while many branches and logistics centers are on land owned by the Israel Land Administration and arrangements must be decided upon for all this.
Published by Globes, Israel business news - en.globes.co.il - on August 11, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020