Israel to privatize Gapim
Israel’s Ministerial Committee for Privatization Affairs, headed by Minister of Finance Benjamin Netanyahu, approved the proposal to privatize Gapim, Israel Orthopedic Industry Ltd., and to instruct the Government Companies Authority to work to promote the privatization of the Company for the Development of the Lod Ramla Region.
A resolution was arrived at to privatize Gapim Ltd. through a private placement of the Government's shares in the company, in one tranche, to a single investor or a group of investors from Israel and/or overseas. The state of Israel currently holds 100 percent of the share capital of Gapim.
The company's employees will be entitled to financial compensation, in accordance with the directives of the Authority, immediately following and contingent upon the private placement. Gapim Ltd. deals primarily in the provision of disposable medical equipment and in the servicing and manufacture of wheelchairs and prosthetic limbs, for handicapped veterans and others.
A resolution was arrived at to instruct the Government Companies Authority to work toward the privatization of the Company for the Development of Lod and Ramla within a period of six months, and to receive the approval of the Knesset's Finance Committee regarding the method of the divestiture.
In April 1997, the Ministerial Committee for Privatization Affairs reached a resolution regarding the privatization of the Company for the Development of the Lod and Ramla Region, by way of a private placement. This matter has yet to be approved by the Knesset's Finance Committee and the privatization process has therefore been stopped.
It should be noted that the resolution was made in accordance with the company's policy, in support of the process. The Israeli state holds 95 percent of the company's shares, while the remaining five percent are held by the Lod Municipality. — (menareport.com)
© 2003 Mena Report (www.menareport.com)