A financing agreement for the Israel Postal Company totaling NIS 500 million has been signed. The agreement is part of the Israel Postal Co. recovery arrangements and the State committed to cover a significant portion of the cost of employee retirement. Over the past few months, the two parties have been working on the detailed agreement, which was signed last night.
The principles of the agreement are to reduce the work force to below 5,050, 3,800 of whom will become permanent employees by 2018 in a gradual process.
Under the agreement, the state will transfer NIS 477 million against shares, less the value of assets to be transferred to the state. These are assets that the company does not need for its ongoing operations, or which were leased to third parties.
In parallel, the state is beginning to deal with the matter of the privatization of 20% of the company’s shares to private investors. The Government Companies Authority intends to carry out the process already this year.
Published by Globes [online], Israel business news - www.globes-online.com - on March 19, 2015
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