Published On: Sun, Nov 23rd, 2014

IMI privatization moving forward


Market sources estimate that Israel Military Industries is worth $657 million.

Israel Military Industries (IMI)

 

The privatization of Israel Military Industries Ltd. (IMI) is moving forward as planned said Government Companies Authority head Ori Yogev after a visit to the company’s plants in Ramat Hasharon. At the start of the year the Government Companies Authority published a call to private investors to to compete for acquisition of the defense company, which is fully owned by the Israeli government. When the privatization process is completed, the company will move its plant to the Negev, thus freeing up large tracts of valuable land in Ramat Hasharon.

Market sources estimate that the government could fetch $657 million for IMI. One highly classified unit of the company will be separated from IMI and called Tomer Systems in order to protect state interests.

Yogev was shown around the company by Chairman General (res.) Udi Adam and CEO Avi Felder. They discussed the company’s products portfolio, new organizational structure and progress in the voluntary retirement of hundreds of employees as agreed with the Histadrut, Ministry of Defense and Ministry of Finance, and approved by the cabinet. By the end of the year 700 employees would have taken early retirement, and they will be joined by hundreds more next year.

Adam said, “The aim of the company is to maximize value and increase its order backlog and develop advanced weapons systems and technologies.”

Felder said that the order backlog stood at $2.1 billion.

Published by Globes [online], Israel business news – www.globes-online.com

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