The plan will now be presented for approval next month to the Knesset Committee on Privatization Matters.
Israel Military Industries Ltd.'s (IMI) board of directors has approved the outline of the privatization plan signaling more progress in the government's protracted attempts to sell the defense equipment and systems manufacturer. The plan will now be presented for approval next month to the Knesset Committee on Privatization Matters.
With the board's agreement to the plan IMI chairman Maj-Gen (res.) Udi Adam said that there will now be professional discussions so that an operative plan can be put before the Knesset committee.
The privatization plan includes the voluntary retirement of 950 of IMI's 3,000 employees, at cost previously estimated at NIS 1.1 billion. A group of 1,050 employees will receive a safety net in the same amount to guarantee their pensions after the company is sold. An external NIS 830 million safety net, which will be managed by a trustee, will be established to guarantee the rights of longstanding employees who will retire.
Estimates are that the privatization plan will cost the government NIS 4 billion although the Ramat Hasharon site that the company will vacate is reportedly worth NIS 20 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on September 12, 2013
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