Israel: Privatisation for Agrexco

09-01-2008 | |

The Ministry of Agriculture announced that the council of the Plants Production and Marketing Board approved the privatisation of Agrexco, Israel’s largest agricultural exporter.

Agrexco is well-known for the production and export of field crops, vegetables, fruits and poultry.

First stage of privatisation
According to the Agriculture Minister Shalom Simhon, the first part of the process will be to include equalising stock rights and conducting a valuation of the firm.

The Plants Board, owned by a number of farmers organisations, owns 97% of the shares of Agrexco, and has a 19% voting share. The rest of the voting rights belong to the state, 50%; Tnuva, 25%; and the Poultry Board. All of the owners have approved the privatisation plan.

Second stage of privatisation
It has been reported that according to the Ministry, the second stage of the privatisation process will include a tender to sell control to a strategic investor, and the residual shares are to be sold on the stock market or be kept by the farmers.

It was estimated last week by the Ministry that the value of Agrexco in the half-a-billion-shekel range.
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