In the first stage, 20% of the Israel Postal Company's shares will be sold to an investor from Israel or overseas in a private placement, Globes reports.
The ministerial privatization committee is scheduled to discuss on Sunday a proposal by Minister of Finance Moshe Kahlon and Minister of Communications Ayoob Kara to privatize the Israel Postal Company. The two-stage privatization was prepared by the Government Companies Authority, after Kahlon approved it in principle.
In the first stage, 20% of the Israel Postal Company's shares will be sold to an investor from Israel or overseas in a private placement. The maximum number of directors on the company board at this stage will be 11, three of whom will represent the buyer or be recommended by him or her, depending on the appointment mechanism established.
In the second stage, 20% of the Postal Company's shares will be issued on the Tel Aviv Stock Exchange (TASE). Following the offering, the maximum number of directors on the company boards will be 12, only two of whom will be from the private placement purchaser.
The sale process will be an auction, as is the usual practice in a private placement by the Government Companies Authority. In this process, the Government Companies Authority will be entitled to take into account the price offered for the shares and the purchaser's capability in the company's fields of business or tangential fields of activity, including postal bank activity.
The second part of the process will take place within two years of the completion of the private sales, through an offering to the public via a prospectus that will include an offer for sale by the state and/or a financing round for the company on the TASE. After both stages are completed, the state's fully diluted share will not fall below 60%.