Israel to Launch $4b Wave of Privatizations in 2015
Israel will begin selling major stakes in a number of state-owned companies in November or December despite any political uncertainty created by elections next month, the country's privatization chief said.
A decade after its last privatization program, the government aims to sell all or part of eight companies and two ports by 2017, raising around 15 billion shekels ($3.9 billion) in a plan announced in October.
Of the 87 companies that remain in government hands, the 10 set to be sold generated nearly 90 percent of revenue, said Ori Yogev, who is officially the head of the Government Companies Authority, a unit of the finance ministry.
With parliamentary elections set for March 17, a new government may not be in place until the middle of 2015 since it often takes a long time to form coalitions in Israel.
But Yogev said that would not stand in the way of the government floating up to 49 percent of the Ashdod port - one of two main seaports on the Mediterranean coast - on the Tel Aviv Stock Exchange (TASE) in November or December. The controlling stake will be sold in 2020.
"Part of the decision is to develop the TASE and develop the local market even if in some cases we can get better value outside of Israel," Yogev said.
A minority stake in Israel Natural Gas Lines will also be sold late this year, along with the full privatization of Israel Military Industries - the developer of the Uzi submachine gun and other arms and ammunitions - and the issuance of tradable bonds in the country's railway and electric utility.
Reporting by Steven Scheer
