Israel to sell 40% of postal firm by 2022 amid surge in overseas packages
By Steven Scheer
MODI'IN, Israel, July 14 (Reuters) - Israel plans to sell 40% of its postal company to help finance a shift in its business model towards delivering parcels ordered online from overseas, government and postal officials said on Tuesday.
In a first phase, 20% of the Israel Postal Co would be sold to either a strategic investor for about 250 million shekels ($73 million), with initial bids due in October with a view to completing the transaction within a year.
A share offering in Tel Aviv of another 20% would follow in 2022.
The firm cut costs after going through financial difficulties in 2013, but officials believe it still needs to become efficient while changing its focus to handling a mass influx of packages from e-commerce sites such as Amazon, Next and Ali Express.
The firm's chief executive, Danny Goldstein, said the state was not in a position to deal with that shift. "We need someone that ...can contribute to future growth," he said.
Yaacov Kvint, the head of the Government Companies Authority, told a news conference he hoped for success similar to other postal privatisations such as Alibaba's BABA.N purchase of a stake in Singapore Post.
($1 = 3.4415 shekels)
(Reporting by Steven Scheer; editing by John Stonestreet)
((steven.scheer@thomsonreuters.com; +972 2 632 2210; Reuters Messaging: steven.scheer.thomsonreuters.com@reuters.net; Twitter: @StevenMScheer))
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.