The Government Companies Authority, headed by Attorney Yaakov (Yankee) Quint, announced today (Tuesday) the process of selling 20% of the state's holdings in the Israel Post Company.
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According to the decision of the Ministerial Committee, the state will sell up to 40% of its holdings in Israel Post in two stages: In the first stage, which will be launched today, a sale will be made to a strategic private investor of 20% of the state's holdings in the company, and in the second stage, the Authority will act to sell an additional 20% of its holdings, by way of an offer to the public in an issuance on the Stock Exchange, so that the state's holdings in Israel Post will not be less than 60%.
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It was also decided that a significant portion of the proceeds from the sale will be used as a source of funding for investments and development at Israel Post, including the continued promotion of the Postal Bank, the development and improvement of service to citizens, and the development of new products and services according to customer needs and the company's efficiency.
At a press conference held today in the presence of the Minister of National Digital Affairs, in charge of the Government Companies Authority, MK David Amsalem, the minister said: "The privatization of Israel Post is one of the most significant moves in the series of privatizations that we are leading among government companies. The goal of these privatizations is to continue to improve service for the benefit of the citizen, everywhere in the country, and to bring in a strategic investor with business understanding, who will bring value and create synergy to those companies. We believe that bringing in an investor of this magnitude will allow the Post to continue to grow and take off, and offer better and more efficient service to the general public, in the center and in the periphery.".
Minister of Communications, MK Yoaz Hendel, said: "Privatization of the post office and reform are a necessity. The post office is an essential infrastructure that provides service throughout the country and everywhere. Therefore, we must improve service to citizens, competition, and economic viability. In light of the increase in parcel ordering and online trade, privatization and the introduction of a private investor into the postal company is a critical step. I will do everything to make the move a success.".
At the press conference, Attorney Yaakov (Yankee) Quint, Director of the Government Companies Authority, presented the outline of the sale, which will last about a year. "The goal of the move to introduce a strategic investor to the postal company is to develop the company's activities with an emphasis on the field of online commerce, while introducing an investor will lead to improved customer service, long-term financial stability and strength for the company, maximizing the company's launch capabilities, while providing access to experts and knowledge, in order to improve performance, develop new products and services for the benefit of customers, and increase transparency.".
He added: "Israel Post is one of the leading companies in the portfolio of government companies and is the first in a series of privatizations that will be launched in the coming months, with the aim of creating value for the public.".
Israel Post is the largest logistics company and retail network in Israel with the widest distribution, with over 1,300 service points, approximately 1,500 postmen and couriers, and approximately 45 million visits to branches annually. In fact, it is the only company that delivers mail and packages from Dan to Eilat, including the Golan Heights, the Negev, the Gaza Envelope, the villages of the Triangle, and Judea and Samaria.
Israel Post's revenues in 2019 amounted to NIS 1.84 billion, operating profit of NIS 47.2 million and EBITDA of NIS 164 million (8.91% of revenues). The volume of investments in technology and infrastructure in 2019 amounted to NIS 150 million. According to data from the statista.com website, the volume of online shopping in Israel in 2020 was estimated at approximately NIS 14.5 billion and is expected to grow to approximately NIS 24.3 billion in 2024.
