The prolonged strike at Israel Chemicals (TASE: ICL: NYSE: ICL) subsidiaries Bromine Compounds and Dead Sea Works has already ended, but discussions between the Ministry of Finance and Israel Chemicals management about the state's golden share in the company are continuing. Israel Chemicals CEO Stefan Borgas today met with Ministry of Finance Accountant General Michal Abadi-Boiangiu for three hours in order to discuss complaints raised by the workers committees and the Histadrut (General Federation of Labor in Israel) in recent months. It has been alleged that Israel Chemicals is shifting business out of Israel in violation of the rules for the golden share held by the state since the company was privatized in the 1990s. Israel Chemicals chairman Nir Gilad also attended the meeting.
Today's meeting took place after Israel Chemicals notified the Ministry of Finance about the overseas investments it had made in recent years and its global investment plans for the coming years, including the export of special knowledge. Israel Chemicals disclosed to the Ministry of Finance the requested details about its measures, after its legal advisor, Dr. Briss, sent the company CEO a list of questions on the subject. Abadi-Boiangiu and Giladi met at the beginning of this week.
In addition to the discussion about the complaints concerning possible golden share violations, the parties also discussed questions related to the date in 2030 on which Israel Chemicals' license to quarry minerals in the south will expire, and the consequences of implementation of the Sheshinski 2 Committee's recommendations about the company. The main recommendation of the Committee, headed by Prof. Eytan Sheshinski, was to charge Israel Chemicals a 42% excess profits tax starting in 2017. Following those recommendations, Israel Chemicals announced that it was halting billions of shekels in planned investments in Israel.
At the end of the meeting, the Ministry of Finance said, "The meeting was productive. Israel Chemicals presented the current situation at the company to the Accountant General, and answered her questions about matters pertaining to the golden share." The Ministry of Finance said that additional meeting on the subject would be held.
Commenting on the meeting, Israel Chemicals said, "The golden share is designed to ensure the preservation of essential state matters and the upholding of the public interest in Israel in the operation of the company. Israel Chemicals is acting absolutely as required by the golden share provisions. Detailed answers proving this were provided to the Ministry of Finance, and will also be provided in the future."
Published by Globes [online], Israel business news - www.globes-online.com - on June 2, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015