Communications Minister Yoaz Hendel announced Wednesday evening that he intends to promote the privatization of 100% of the State's holdings in the Israel Postal Company.
The decision was made after a series of discussions with the participation of the professional echelons in the Finance Ministry and in cooperation with the Government Companies Authority. According to the consultations, the complete privatization of the postal company is a long-term solution to the structural problems of the postal company and the postal services to the public.
The privatization outline agreed upon by Communications Minister Hendel and Finance Minister Avigdor Liberman seeks to promote an IPO with up to 40% of the shares of the postal company on the Tel Aviv Stock Exchange. Simultaneously with the issuance of 40% of the shares of the postal company, the ministers will promote the procedures that will lead to full privatization through the sale of the rest of the State's shares in the postal company through a private sale, or the privatization of 100% of the postal company's shares.
In 2018, the State began a process of selling 20% of the company's shares to a private investor. The Communications Ministry believes that this model has not achieved the State's goal, and as long as the state remains in control of the postal company, it will be required to inject hundreds of millions of shekels every few years to regulate the company's activities.
Simultaneously with the implementation of the privatization outline, the Communications and Finance Ministries will work to update the regulation on the postal market and the postal company, as part of the amendment to the Postal Law currently being discussed in the Economics Committee. The proposed reform includes expanding competition in the field of letter sending, stimulating the transition to digitization, changing the method of price control, reducing regulation and implementing higher fines for violations of license provisions.
Hendel said: "Ever since I took office I have been warned not to touch the mail. One communications minister after another refrained from touching this hot potato. Today we are embarking on a new path in the postal market in Israel. Open to competition, lower regulation, and bringing historic reform in the mail system."
"The letter market is fading and the parcel market is growing, and in this reality we are making a big change today that will bring Israeli citizens a new era of quality, efficient and advanced postal services. Just as I did with the communications infrastructure when we returned Israel to the path of huge investment in infrastructure, it is time for the postal services to undergo a change.
Hendel added: "We will act sensibly and in cooperation with the dedicated workers. We thank Finance Minister Liberman for his joint work in implementing this reform."