The firm will become a holding company with four subsidiaries.
Paz Oil Company Ltd. (TASE:PZOL), controlled by Zadik Bino through Bino Holdings Ltd. is set to announce a restructuring plan two months after the appointment of Yona Fogel as CEO. Sources inform ''Globes'' that Paz will become a holding company with four subsidiaries for oil refining and sales, fuel marketing, retail, and chemicals. Paz's board is due to discuss the plan during this month and officially announce it thereafter.
Paz is expected to split its activity into a number of divisions, which will be incorporated as subsidiaries. The idea is enable Bino to add value to the company and possibly float some of the subsidiaries. The company has been planning the restructuring in the year since acquiring Paz Ashdod Refinery.
The restructuring was a bone of contention between Bino and former CEO Mordechai Ben-Shach, who resigned four months ago. Bino then hired the Hay Group to advise on the restructuring. The plan includes 250 lay-offs, mostly headquarters' administrative staff.
Published by Globes [online], Israel business news - www.globes-online.com - on December 2, 2007
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