The Ministerial Committee for Privatization on Monday headed by Finance Minister Moshe Kahlon (Kulanu) unanimously approved the privatization of Israel Post.
In recent years, Israel Post has seen a drop in revenue, due to electronic substitutes for many of its services.
Since 2015, Israel Post has followed a rehabilitation plan, including the opening of centers for delivering packages, changing its opening hours, reducing the number of positions, and re-planning its operations.
A new plan proposed by the Government Companies Authority would offer 20% of company shares to a strategic private investor, either in Israel or abroad. After two years, an additional 20% of shares would be offered, and Israel Post would become a public company whose shares can be bought at the Tel Aviv' Stock Exchange. Private shareholders will receive extra benefits.
However, the Israeli government's shares in Israel Post will not drop below 60%.
The Israeli government will sign an agreement with the private investor, allowing him to influence the choice of CEO and chairmen of the company's finance committee and human resources. The investor will also be obligated to retain his shares in Israel Post for a period of seven years.
If the shares are not picked up by a private investor, the new plan includes an alternative for the 40% of shares offered to the public.
The Government Companies Authority will work with the Finance Ministry, Communications Ministry, and Shabak (Israel Security Agency) to delineate the government's interests in both Israel Post and the Postal Bank, as well as how to protect those interests. The option of limiting a given shareholder from acquiring more than 5% of shares without prior approval is also being investigated.
The sale of shares is expected to bring revenue to the Israeli government.
The plan is also advancing the separation of Israel Post and the Postal Bank, with the goal of turning the Postal Bank into a completely independent bank.