The Israel Ministry of Communications has confirmed the privatization of Israel Post is complete following its sale to Milgam Group for Shk468m (US$125m), with the aim of boosting efficiency and public services.
According to the ministry, the postal operator has been in “financial crisis” since 2006, severely affecting its services. To rectify this situation, the Ministry of Communications updated the postal market legislation, including opening it up to competition, and announced plans to privatize the service last July.
In a statement released on Thursday (November 14) Dr Shlomo Karai, the minister of communications, said, “I congratulate the Milgam Group on the conclusion of the privatization of the postal service. We worked earnestly for the privatization to be completed as soon as possible, to open the market to real competition and, today it is happening.
“I am sure that the winner will bring a new management team, a new approach and, above all, a faster and better quality service for the benefit of the citizens of Israel. The Ministry of Communications will continue to verify compliance with the postal company’s license obligations in order to ensure that the periphery and the various population groups are not adversely impacted.
“Good luck also to the employees led by the chairman of the board, Shimon Paragon, who, together with the new management team, will lead the company to the forefront of quality and service.”