The Ministerial Committee on Privatization Affairs: approved the issuance of IAI shares

The Ministerial Committee on Privatization Affairs approved the issuance of IAI shares. The company's management and the Companies Authority were asked to present within 130 days the final outline for the company's issue - which will include details of the process and a new collective agreement between the company and the employees.
The Minister in charge of the Companies Authority, Dudi Amsalem, the Minister of Justice Avi Nissenkorn, the Minister of Finance Israel Katz, and the Minister of Tourism Orit Farkash HaCohen supported the IPO after the Companies Authority warned that leaving IAI as a government company endangers it, as it may deteriorate. IMI before it was sold two years ago.
To strengthen their position, the Companies Authority presented three studies conducted on moves to privatize defense government companies, the results of which show that in most cases there is an improvement in the companies' profitability, efficiency, volume of dividends they distribute, sales and their leverage ratio.
IAI Chairman Harel Locker said that “the company’s issuance is a natural and desirable continuation of the business revolution the company has experienced in recent years, and the excellent financial results we have achieved in the last two years. The issue will be in line for the company's employees, the Israeli government and the capital market, and will greatly contribute to strengthening the security of the State of Israel and its economy. "
IAI Katz, secretary general of the Israel Aerospace Industries Organization, said: "An IPO at this time is an important economic opportunity, which will establish the company's position as a leader in the global business arena, and allow employees to enjoy its success. The decision of the Ministerial Committee, as passed today, incorporates many achievements for the employees and places in a new light the meaning of their consent to the move. I am glad that the basic conditions we set at the beginning of the negotiations remain the basis for the whole process. I see the good of the company but I will never give up on the interests of the employees. I sincerely hope that in this step we will write a new chapter in the life of IAI and its dedicated workers. "
The director of the Companies Authority, Yankee Quint, said: "I welcome the approval of the IPO. We have reached a very significant milestone for improving and streamlining the company. The procedure will contribute to strengthening national security both economically and security-wise. ".