Israel's Government Companies Authority issued a tender for the state's 48.6 percent stake in container shipping company Zim Israel Navigation Co.
The government said it would retain a golden share in the shipping company, which is 48.9 percent owned by the holding company Israel Corp. The deadline for submitting bids is July 26. Yaron Jacobs
, head of the Government Companies Authority, said he expects the process to take six to eight months. Zim operates a fleet of over 80 vessels.
Speaking at a privatization seminar, Jacobs said Israel Corp i
s barred from participating in the tender, as are government-owned companies. But Israel Corp. holds the right of first refusal on the buyer. It also has the right to sell its stake in Zim together with the government shares. According to the method of privatization, an agreement must be reached with employees prior to the submission of price offers. - (Reuters)