Treasury seeks clarifications from Israel Chemicals

Dead Sea Works picture: Tamar Matzapi
Dead Sea Works picture: Tamar Matzapi

The Finance Ministry is not satisfied withIsrael Chemicals' response to questions about its obligations under the state's special share.

The State of Israel will demand further explanations from Israel Chemicals (TASE: ICL: NYSE: ICL) concerning the company's obligations under the terms of the state's special share in the company. This arises from a meeting at the Ministry of Finance on the matter yesterday.

Contrary to reports in the past few days to the effect that Israel Chemicals' explanations had satisfied the Ministry of Finance, government sources said yesterday that the state's involvement with the company on the matter would continue for some time.

Yesterday's meeting was called to examine the response that Israel Chemicals submitted to a letter from the ministry's legal advisor Adv. Joel Baris on the special share. Baris asked whether Israel Chemicals had transferred abroad substantial business activity and know-how without obtaining the state's consent in advance as required by the terms of the special share.

In response, Israel Chemicals said that in general no activity had been transferred abroad and no other restructuring had taken place in the company or in its subsidiaries requiring prior consent from the state. At yesterday's meeting, however, it emerged that the responses did not answer all the questions arising from the matter, and it was decided that a further approach would be made to Israel Chemicals management in the next few days to obtain the necessary clarifications.

Besides Baris, Ministry of Finance Accountant General Michal Abadi-Boiangiu, who was appointed by Prime Minister Benjamin Netanyahu to coordinate the matter, also took part in the meeting yesterday.

Published by Globes [online], Israel business news - www.globes-online.com - on March 24, 2015

© Copyright of Globes Publisher Itonut (1983) Ltd. 2015

Dead Sea Works picture: Tamar Matzapi
Dead Sea Works picture: Tamar Matzapi
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