Connect with us

Hi, what are you looking for?

Jewish Business News

Business

UPS Shows Interest in Israel Postal Company Privatization

Local investors were joined on Zoom conference held as part of the privatization tender process. Participants included among others representatives of UPS.

The Government Companies Authority plans to privatize the Israel Postal Company which was halted due to Israel’s repeated elections and the delay in forming a government.

Now, The Israel Postal plans to sell 40% of the company’s shares. 20% of the company to a strategic investor. Another 20% will be offered on the Tel Aviv Stock Exchange.

The privatization of The Israel Postal has already received the necessary approvals from the Government Companies Authority and the government.

Privatization at the COVID-19 crisis with great uncertainty on the financial markets carries quite a risk.

The government is yet to finalize future regulations which will have a direct impact on Israel Postal Company valuation. These regulations include how many post office branches the new company could close, whether it would require to serve the entire country with unified prices, and would the government fix the price of stamps.

In addition, interested investors will have to deal with a major problem, which is the obligation to provide universal service which imposes costs of about NIS 60-70 million annually.

According to Globes, the investor’s conference held by the Government Companies Authority about the company and the tender process included representatives of UPS, an American multinational package delivery company, and local investors such as Fortissimo Capital, Bezeq Israeli Telecommunication, Melisron Ltd., Gama Management & Clearing, the Kedma Fund, Cukierman Logistics, chairman of the Aluma Fund.

Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Newsletter

Advertisement

You May Also Like

World News

In the 15th Nov 2015 edition of Israel’s good news, the highlights include:   ·         A new Israeli treatment brings hope to relapsed leukemia...

Travel

After two decades without a rating system in Israel, at the end of 2012 an international tender for hotel rating was published.  Invited to place bids...

empty

The contract signed between the Israeli government and Pfizer shows clearly and unequivocally that this is a clinical study on humans - The agreement...

VC, Investments

You may not become a millionaire, but there is a lot to learn from George Soros.

Advertisement
cialis cialis satış