Letter from the Commercial Attaché
Dear Friends and Colleagues,
We had great weather this summer in HK, anyone who stayed had
a real treat. We have been getting ready for the new business
season and we are starting off with a delegation from Israel in
Martime and Ports technologies emphasizing on IT, Telecom and
Security, as well as a large delegation for the annual September
Jewelry show.
We are pleased to announce that IZZUE has recalled all the Nazithemed merchandise. Six days ago, IZZUE, a HK fashion store,
has launched its latest marketing campaign - a salute to Nazi
Germany. Its 14 stores across the territory displayed, swastikas
and Nazi party logos were on the walls and Nazi symbols were
also found on clothes for sale. Due to severe pressure put on the
store by the media the consulate and public outrage, the store has
taken down the flags and all merchandise. The Consulate
General of Israel is very pleased with this outcome. We hope that
this will serve as a lesson for the future and such mistakes will not
happen again in Hong Kong. If you have any views on this issue
we welcome your thoughts.
As three main privatization transactions are being resurfaced
these days in Israel, we will give you a comprehensive report on
privatization in Israel in this month’s Special Report.
Please feel free to contact us for any assistance required
economyassit@hongkong.mfa.gov.il.
IMPORTANT NOTE: Our telephone and fax numbers have been changed to:
Consulate operator: 2821 7500
Economic & Trade Dept Tel: 2821 7509
Economic & Trade Dept Fax: 2865 0220
Sincerely yours,
Ornit Avidar
Commercial Attaché
traderep@israel.org.hk
1. NEW PUBLICATIONS
2. JOINT VENTURES, COMPANIES AND PRODUCTS
3. UPCOMING EVENTS IN HONG KONG
4. UPCOMING EVENTS IN ISRAEL
5. BUSINESS OPPORTUNITIES FROM ISRAEL
 GENERAL
 FOOD
 SOFTWARE
 VENTURE CAPITAL
6. SPECIAL REPORT: Privatization in Israel
1. NEW PUBLICATIONS

Need business information on Israel?
Contact Globes Information Service by e-mail: service@globes.co.il or Tel:
972 3- 953- 8807.

A new edition of the "Advanced Technologies from
Israel" focused on INFORMATION, MANAGEMENT is
waiting for you at
http://www2.matimop.org.il/newsletter/newsletter20037.
htm. This newsletter is published, free of charge, by
MATIMOP - the Israeli Industry Center for R&D. Each
edition is focused on distinct subjects.
Back
2. JOINT VENTURES, COMPANIES AND PRODUCTS

Flash Networks Ltd. – has just opened their Asian
Headquarter office in Hong Kong. Flash Networks is
the leading provider of wireless data optimization
infrastructure solutions to support carrier and enterprise
customers worldwide. For more information, please
visit www.flashnetworks.com or to contact Mr. Yoram
Lotan, VP Sales APAC at Tel : (852) 9409 9994 or email: yoraml@flashnetworks.com
3. UPCOMING EVENTS IN HONG KONG
Israeli Delegation - Ports & Maritime Technologies - 10
Israeli companies will be visiting Hong Kong during 7 – 9
September, 2003, for meetings with Hong Kong companies in
the fields of Ports & Maritime, Distributors and System
Integrators. For a list of companies or meetings arrangement,
please contact us.
EnviroSeries - Financing Sustainable Development
Conference & Environment Investor Forum 2003 – will be
held on 10 September 2003 in the Hong Kong Convention &
Exhibition Centre. The Financing Sustainable Development
Conference & Environment Investor Forum will bring together
the providers of capital and the environmental and sustainable
businesses to create a platform for knowledge exchange and
commercial interaction. The Consulate General of Israel is an
organizing supporter of this event.
September Hong Kong Jewellery & Watch Fair – will be
held on 17-21 September 2003 at Hong Kong Convention &
Exhibition Centre. Israeli Diamond & Jewellery companies
will be exhibiting in the show. For a list of companies, please
contact us.
Hi-Tech Venture Summit 2003 – will be held on 7 - 8 Oct
2003 at Hong Kong Convention and Exhibition Centre. This
event will promote business and technology alliances,
partnerships and capital - raising on a global scale. It is
aimed in three sectors: 1) Information and Communication
Technologies; 2) Biotechnology and 3) Security and
Biometrics. It is also a Business Matching event for
companies in new, high-tech, and emerging fields of business
and aims to assist venture businesses around the world and
contribute to the creation of new business. The Consulate
General of Israel and IVC are organizing supporters of this
event.
EnviroSeries – Cross Border Environmental
Collaboration 2003 – will be held on 10 October 2003 at
Hong Kong Convention & Exhibition Centre.
The Consulate General of Israel is an organizing supporter of
this event.
The 8th Macau International Trade & Investment Fair – will
be held on 23-26 October 2003 at the Macao Tower
Convention & Entertainment Center. MIF is the largest
international trade fair held in Macao. Apart from the trade
show, a series of forums, conferences, seminars and
workshops will be held during the Fair
4. UPCOMING EVENTS IN ISRAEL
Plasto Ispack 2003 – the 10th International Exhibition for
Plastics, Rubber & Packaging Exhibition, to be held on
September 1-4, 2003 in Tel Aviv’s Exhibition Garden. This is
the largest ever Exhibition of Israel’s Plastics, Rubber &
Packaging industries. Plasto Ispack 2003 will be the
showcase for the Israel's world-renowned plastics, rubber and
packaging technologies and integrated solutions. It will place
emphasis on agricultural products. Israel's plastics, rubber and
packaging industries are among the most advanced industrial
sectors, placing special emphasize on innovations, smallbatch production, high quality and quick delivery. Come join
us in this event.
SME 2003 - the 14th International SME Conference will be
held on September 15-18, 2003, at the Hilton Hotel, Tel-Aviv,
Israel. The conference will deal with a broad number of
categories and it will be an unprecedented opportunity to meet
with international organizations and leaders, all of whom have
the same desire to promote SMEs worldwide. Come join us in
this event
AgriTech Israel 2003 – the 15th International Agricultural
Exhibition, will be held on September 15-18 2003, in Tel-Aviv,
Israel. The Congress program will be complemented by an
exhibition of the most recent products related to the field of
Agritechnology. Over the years Agritech Israel became a wellknown brand name relying on the worldwide reputation of
Israel Agriculture. The industry of agricultural inputs is a fullyfledged partner of our agriculture’s achievements. Come join
us in this event.
AgriFlor Israel 2003 – is the floriculture industry’s
international event in Israel, the second largest cut flower
exporter in the world, will be held on September 15-18 2003,
in Tel-Aviv, Israel. This event will provide a meeting place for
everyone in the industry, with exhibits from Israel and other
flower breeders and producers from countries all around the
world. Come join us in this event.
Prime Minister’s Summit for Export Promotion 3002 will
take place in Tel Aviv between the 19th – 20th November 2003.
The Prime Minister’s Business Summit” is an annual event
sponsored by the Prime Minister of Israel, which brings
together leading international and Israeli business people.
This year's summit will explore two main issues: growth at a
time of crisis and Israel's preparation towards it's changing
target markets. International leading figures from the HighTech and finance industry are invited to come at this time to
Israel, in order to assist the efforts of the Hi-Tech industry, the
emerging companies and the Venture Capital funds. Come
join us in this event.
5. BUSSINESS OPPORTUNITIES FROM ISRAEL
GENERAL
Leshem K.M. Ltd. (August)
(Field: Project management in the energy field; Seeking: Joint
Venture)
Leshem – is representing one of the main Israeli storage and
infrastructure companies of fuels and gas.
The company is interested in seeking an international
company to associate with them and create a joint
venture in managing a project in the field of natural gas.
For more information, please contact Mr. Israel Kahane, CEO
at Tel: 972-8-8554488, Fax: 972-8-8658021 or e-mail:
Israel@lesheminc.com
FOOD
LAI-Consulting Ltd.
(Field: Instant Coffee and Instant Cappuccino; Seeking:
Agents/Distributors)
 Mr. Ron Tschernia, International Sales Manager of LAIConsulting will be coming to Hong Kong during the first
week of September. LAI-Consulting is seeking: Agents,
Importers and/or Distributors in Hong Kong and China.
Mr. Tscherinia would like to meet with companies dealing
with food & beverage products. LAI-Consulting is an
Israeli company trading in commodities, the company is now
focusing on Instant Coffee and Instant Cappuccino and is
currently looking to enter the Hong Kong and Chinese Market
 For more information, please contact Mr. Ron Tschernia at
Tel: 972-67-323 313 or e-mail: ront24@attglobal.net
 For meeting arrangement, please contact us.
SOFTWARE
DreamView Multimedia Ltd.
(Field: Software-Multimedia, Content; Seeking:
Agents/Partners)
 DreamView Multimedia – is focused on the creation of
digital content for all media, from film to TV and Video to
Interactive and online environment, using interactive
characters and virtual prototypes. The company has unique
technique of transforming architects plans into 3D
pictures/movie. The software is PC-cd rom and is compatible
to all kinds of PCs.
 The company is seeking Agents/Partners in Hong Kong
and China, to promote their knowledge in developing
complicated internet applications for service and
marketing departments in medium-large organizations;
that can introduce their illustrations knowledge to
architects and constructors. Dreamview also has a
range of software for kids.
 For more information, please visit www.dreamview.co.il or
to contact Mr. Doron Ben-David, Business Development at
Tel: 972-3-644 4441, Fax: 972-3-644 4442 or e-mail:
bd_doron@zahav.net.il
VENTURE CAPITAL
Hadasit Medical Research Services and Development Ltd.
(Field: Medical Technologies/Communication Vehicles
Seeking: Investors/Partners)
Hadasit – was established as a subsidiary of Hadassah
Medical Organization (HMO) in Jerusalem, aimed at finding
solutions to problems faced by modern medicine. IP
generated by HMO has already gained a place of honor in the
international medical research arena with cutting-edge
biomedical technology for the development of novel
therapeutics, diagnostic methods and devices. Hadasit,
Teva Pharmaceuticals, and Giza and Pitango VC funds have
joined to form Bioline Therapeutics, a biopharmaceutical
drug development company. Hadasit will serve both as a
strategic investment partner and as an operative partner
capable of outsourcing Hadassah's pre-clinical and clinical
services.
The company is seeking potential commercial partners
in Hong Kong and China, for the various early stage
Medical Technologies and Communication Vehicles.
For more information, please visit www.hadasit.co.il or to
contact Mr. Stuart Bernstein, Marketing Manager at Tel: 9722-677 7906, Fax: 972-2-643 7712 or e-mail:
stuart.b@012.net.il
Spring Diagnostics Ltd.
(Field: Diagnostics Kits; Seeking: Investor/Partners)
Spring Diagnostics - is a small Israel start up company
located in Weizmann Park in Israel. The company develops
fast diagnosis for pathogenic bacteria, specifically antibiotic
resistant bacteria such as MRSA (Staphylococcus aurous)
and other nosocomal (Hospital acquire) pathogens. The
technology can be extended also to serological tests,
performed by using saliva samples instead of blood samples
by the current techniques. This will enable to perform fast
testes for most pathogenic viruses (i.e. Aids, Hepatitis,
SARS,ect)
The company is seeking Strategic Partners or
collaboration with VCs in Hong Kong and China.
For more information, please contact Dr. Gabi Teper, CEO
at Tel: 972-8-946 0625or e-mail: springd@netvision.net.il
6. SPECIAL REPORT
Overview of Privatization in Israel
General Information
The public sector in Israel is still too large according to the
2003-04 budget report. There are about 100 government
Companies in the fields of: security, Construction, Energy,
Agriculture, Utilities, other services, telecom and
transportation, tourism, Industry and Trade, professional
educations funds and associations. An enlarged public sector
can become a burden on the private sector in many ways. An
efficient public sector will allocate more assets to the private
sector and will allow it to expand. Privatization of government
companies will increase their efficiency and allow them to
become more competitive.
Privatization under Israeli law (Government companies law –
1975) regards to cancellation or reduction: of the
government's share in voting control; or of it's right to appoint
directors for the company; or of government involvement; or
reduction by 10% or more the governments proportion of the
company's share capital or to effect a material reduction in the
company's activities by transferring affairs, assets to others or
liquidation.
The government Companies authority (www.gca.gov.il in
Hebrew) is the responsible entity to promote and execute the
privatization processes. M.I. Holding Ltd and Inbal are the two
additional government companies dealing with privatization
affairs – related to the sale of state shares in banks:
In total, the overall scale of privatization effected between
1986- June 2002 amounted to about US$8,740 million and 83
companies ceased to be Government companies. In the year
2000 – 665.5 mil; 2001 – 44.8 mil; 1-6 2002 24 mil.
The main reason for the drop in 2001-2002 has been the
deterioration that has occurred in the market conditions,
including the condition of the capital market in Israel and the
security situation.
Banks
Most of the banks in Israel became government owned
following the Tel-Aviv stock exchange collapse in 1983. In
1991 substantial privatization of the banks began. This year
the trend is continued.
Telecom and Energy
The telecommunications and energy sectors have been
dominated by the government through regulation and
ownership of government companies. In telecommunications
government deregulated prices, privatized the mobile sector
and the international calls sector as well as sold off some of
it's shares in the incumbent fixed line telephone company Bezeq.
The present
Under the budget report of 2003-04 The GCA will comprise a
program for selling government shares valued 1.58 billion US$
on the stock exchange between 2003-05.
Companies under privatization process
1) Bezeq – the Israel telecommunications company inc. The
Government owns 54.6% of the company. On August 2000 it
was decided to sell a minimum of 50.01%. In 2002 6 parties
showed interest in the purchase. The tender did not go
through and it is now pending. In July 2003, Ministry of
Finance prepares to issue Bezeq shares:
http://www.globes.co.il/serveen/globes/docview.asp?did=7026
24&fid=942
2) El-Al – national carrier – on July 2002 a decision was
made to privities 100% of the government holdings in 2
stages. In the first stage a maximum of 49%. The authority is
looking to privatize El-Al through the Tel-Aviv stock exchange.
The privatization of El-Al is set in motion. El-Al will be
privatized through the Israel Stock exchange. For more
information please refer to:
http://www.mof.gov.il/beinle/elal.htm
3) Bank Leumi - Minister of Finance Benjamin Netanyahu
ordered officials to expedite work on the privatization of Bank
Leumi, with the aim of selling the bank via the Tel Aviv Stock
Exchange this year, the Ministry of Finance said today in a
statement. The privatization will not be conducted via the sale
of a controlling stake to a group, the ministry said. The
government currently owns 40% of Bank Leumi, Israel’s
second largest bank.
http://www.mof.gov.il/beinle/press89.htm
4) Zim – the national shipping company of Israel ltd. – on
august 2000 a decision was made to sell all government
shares of Zim which comprise of 48.6%. four companies
showed interest at the time. The tender is pending.
5) The company for atomization in the municipal authority – a
decision to privatize the company was made on Jan 2002.
6) Oil refineries – The shares will be sold off until the
government has no less than 1.01%
7) Israel aircraft Industries – 20% of the government shares
will be sold off.
8) The electric company – after implementation of the
committee for electricity reform decisions, up to 49% of the
shares will be sold off.
Companies under consideration:
Tadmor – school for the hotel industry
The bank for Industry development
The agricultural bank
Ashot Ashkelon Industries
Pi Glilot pipes and terminals
The government company for medallions and coins.
The geophysical institute of Israel
Gaphim Inc.
Atarim – the company for development of tourist sites.
Sources: The Government Companies Authority, Ministry of Finance, the 20032004 budget report.
Complied by Ornit Avidar – Commercial Attaché – Hong Kong,
1. NEW PUBLICATIONS
2. JOINT VENTURES, COMPANIES AND PRODUCTS
3. UPCOMING EVENTS IN HONG KONG
4. UPCOMING EVENTS IN ISRAEL
5. BUSINESS OPPORTUNITIES FROM ISRAEL
- GENERAL
- FOOD
- SOFTWARE
- VENTURE CAPITAL
6. SPECIAL REPORT: Privatization in Israel
1. NEW PUBLICATIONS


·
Need business information on Israel?
Contact Globes Information Service by e-mail: service@globes.co.il or Tel:
972 3- 953- 8807.
·
A new edition of the "Advanced Technologies from Israel"
focused on INFORMATION, MANAGEMENT is waiting for you at
http://www2.matimop.org.il/newsletter/newsletter20037.htm. This
newsletter is published, free of charge, by MATIMOP - the Israeli Industry
Center for R&D. Each edition is focused on distinct subjects.
Back
2. JOINT VENTURES, COMPANIES AND PRODUCTS

·
Flash Networks Ltd. – has just opened their Asian Headquarter
office in Hong Kong. Flash Networks is the leading provider of wireless
data optimization infrastructure solutions to support carrier and enterprise
customers worldwide. For more information, please visit
www.flashnetworks.com or to contact Mr. Yoram Lotan, VP Sales APAC
at Tel : (852) 9409 9994 or e-mail: yoraml@flashnetworks.com
Back
3. UPCOMING EVENTS IN HONG KONG
Israeli Delegation - Ports & Maritime Technologies - 10 Israeli companies
will be visiting Hong Kong during 7 – 9 September, 2003, for meetings with
Hong Kong companies in the fields of Ports & Maritime, Distributors and System
Integrators. For a list of companies or meetings arrangement, please contact
us.
EnviroSeries - Financing Sustainable Development Conference &
Environment Investor Forum 2003 – will be held on 10 September 2003 in
the Hong Kong Convention & Exhibition Centre. The Financing Sustainable
Development Conference & Environment Investor Forum will bring together
the providers of capital and the environmental and sustainable businesses to
create a platform for knowledge exchange and commercial interaction. The
Consulate General of Israel is an organizing supporter of this event.
September Hong Kong Jewellery & Watch Fair – will be held on 17-21
September 2003 at Hong Kong Convention & Exhibition Centre. Israeli
Diamond & Jewellery companies will be exhibiting in the show. For a list of
companies, please contact us.
Hi-Tech Venture Summit 2003 – will be held on 7 - 8 Oct 2003 at Hong Kong
Convention and Exhibition Centre. This event will promote business and
technology alliances, partnerships and capital - raising on a global scale. It is
aimed in three sectors: 1) Information and Communication Technologies; 2)
Biotechnology and 3) Security and Biometrics. It is also a Business Matching
event for companies in new, high-tech, and emerging fields of business and
aims to assist venture businesses around the world and contribute to the
creation of new business. The Consulate General of Israel and IVC are
organizing supporters of this event.
EnviroSeries – Cross Border Environmental Collaboration 2003 – will be
held on 10 October 2003 at Hong Kong Convention & Exhibition Centre.
The Consulate General of Israel is an organizing supporter of this event.
The 8th Macau International Trade & Investment Fair – will be held on 23-26
October 2003 at the Macao Tower Convention & Entertainment Center. MIF is
the largest international trade fair held in Macao. Apart from the trade show, a
series of forums, conferences, seminars and workshops will be held during the
Fair
Back
4. UPCOMING EVENTS IN ISRAEL
Plasto Ispack 2003 – the 10th International Exhibition for Plastics, Rubber &
Packaging Exhibition, to be held on September 1-4, 2003 in Tel Aviv’s Exhibition
Garden. This is the largest ever Exhibition of Israel’s Plastics, Rubber &
Packaging industries. Plasto Ispack 2003 will be the showcase for the Israel's
world-renowned plastics, rubber and packaging technologies and integrated
solutions. It will place emphasis on agricultural products. Israel's plastics, rubber
and packaging industries are among the most advanced industrial sectors,
placing special emphasize on innovations, small-batch production, high quality
and quick delivery. Come join us in this event.
SME 2003 - the 14th International SME Conference will be held on September
15-18, 2003, at the Hilton Hotel, Tel-Aviv, Israel. The conference will deal with a
broad number of categories and it will be an unprecedented opportunity to meet
with international organizations and leaders, all of whom have the same desire
to promote SMEs worldwide. Come join us in this event
AgriTech Israel 2003 – the 15th International Agricultural Exhibition, will be held
on September 15-18 2003, in Tel-Aviv, Israel. The Congress program will be
complemented by an exhibition of the most recent products related to the field of
Agritechnology. Over the years Agritech Israel became a well-known brand
name relying on the worldwide reputation of Israel Agriculture. The industry of
agricultural inputs is a fully-fledged partner of our agriculture’s achievements.
Come join us in this event.
AgriFlor Israel 2003 – is the floriculture industry’s international event in Israel,
the second largest cut flower exporter in the world, will be held on September
15-18 2003, in Tel-Aviv, Israel. This event will provide a meeting place for
everyone in the industry, with exhibits from Israel and other flower breeders and
producers from countries all around the world. Come join us in this event.
Prime Minister’s Summit for Export Promotion 3002 will take place in Tel Aviv
between the 19th – 20th November 2003. The Prime Minister’s Business Summit”
is an annual event sponsored by the Prime Minister of Israel, which brings
together leading international and Israeli business people. This year's summit will
explore two main issues: growth at a time of crisis and Israel's preparation
towards it's changing target markets. International leading figures from the HighTech and finance industry are invited to come at this time to Israel, in order to
assist the efforts of the Hi-Tech industry, the emerging companies and the
Venture Capital funds. Come join us in this event.
Back
5. BUSSINESS OPPORTUNITIES FROM ISRAEL
GENERAL
Leshem K.M. Ltd. (August)
(Field: Project management in the energy field; Seeking: Joint Venture)
Leshem – is representing one of the main Israeli storage and infrastructure
companies of fuels and gas.
The company is interested in seeking an international company to
associate with them and create a joint venture in managing a project in the
field of natural gas.
For more information, please contact Mr. Israel Kahane, CEO at Tel: 972-88554488, Fax: 972-8-8658021 or e-mail: Israel@lesheminc.com
FOOD
LAI-Consulting Ltd.
(Field: Instant Coffee and Instant Cappuccino; Seeking: Agents/Distributors)
 Mr. Ron Tschernia, International Sales Manager of LAI-Consulting will be
coming to Hong Kong during the first week of September. LAI-Consulting
is seeking: Agents, Importers and/or Distributors in Hong Kong and China.
Mr. Tscherinia would like to meet with companies dealing with food &
beverage products. LAI-Consulting is an Israeli company trading in
commodities, the company is now focusing on Instant Coffee and Instant
Cappuccino and is currently looking to enter the Hong Kong and Chinese Market
 For more information, please contact Mr. Ron Tschernia at Tel: 972-67-323
313 or e-mail: ront24@attglobal.net
 For meeting arrangement, please contact us.
SOFTWARE
DreamView Multimedia Ltd.
(Field: Software-Multimedia, Content; Seeking: Agents/Partners)
 DreamView Multimedia – is focused on the creation of digital content for all
media, from film to TV and Video to Interactive and online environment, using
interactive characters and virtual prototypes. The company has unique
technique of transforming architects plans into 3D pictures/movie. The software
is PC-cd rom and is compatible to all kinds of PCs.
 The company is seeking Agents/Partners in Hong Kong and China, to
promote their knowledge in developing complicated internet applications
for service and marketing departments in medium-large organizations;
that can introduce their illustrations knowledge to architects and
constructors. Dreamview also has a range of software for kids.
 For more information, please visit www.dreamview.co.il or to contact Mr.
Doron Ben-David, Business Development at Tel: 972-3-644 4441, Fax: 972-3644 4442 or e-mail: bd_doron@zahav.net.il
VENTURE CAPITAL
Hadasit Medical Research Services and Development Ltd.
(Field: Medical Technologies/Communication Vehicles
Seeking: Investors/Partners)
Hadasit – was established as a subsidiary of Hadassah Medical
Organization (HMO) in Jerusalem, aimed at finding solutions to problems
faced by modern medicine. IP generated by HMO has already gained a place of
honor in the international medical research arena with cutting-edge biomedical
technology for the development of novel therapeutics, diagnostic methods
and devices. Hadasit, Teva Pharmaceuticals, and Giza and Pitango VC funds
have joined to form Bioline Therapeutics, a biopharmaceutical drug
development company. Hadasit will serve both as a strategic investment
partner and as an operative partner capable of outsourcing Hadassah's preclinical and clinical services.
The company is seeking potential commercial partners in Hong Kong
and China, for the various early stage Medical Technologies and
Communication Vehicles.
For more information, please visit www.hadasit.co.il or to contact Mr. Stuart
Bernstein, Marketing Manager at Tel: 972-2-677 7906, Fax: 972-2-643 7712 or
e-mail: stuart.b@012.net.il
Spring Diagnostics Ltd.
(Field: Diagnostics Kits; Seeking: Investor/Partners)
Spring Diagnostics - is a small Israel start up company located in Weizmann
Park in Israel. The company develops fast diagnosis for pathogenic bacteria,
specifically antibiotic resistant bacteria such as MRSA (Staphylococcus aurous)
and other nosocomal (Hospital acquire) pathogens. The technology can be
extended also to serological tests, performed by using saliva samples instead of
blood samples by the current techniques. This will enable to perform fast testes
for most pathogenic viruses (i.e. Aids, Hepatitis, SARS,ect)
The company is seeking Strategic Partners or collaboration with VCs in
Hong Kong and China.
For more information, please contact Dr. Gabi Teper, CEO at Tel: 972-8-946
0625or e-mail: springd@netvision.net.il
Back
6. SPECIAL REPORT
Overview of Privatization in Israel
General Information
The public sector in Israel is still too large according to the 2003-04 budget
report. There are about 100 government Companies in the fields of: security,
Construction, Energy, Agriculture, Utilities, other services, telecom and
transportation, tourism, Industry and Trade, professional educations funds and
associations. An enlarged public sector can become a burden on the private
sector in many ways. An efficient public sector will allocate more assets to the
private sector and will allow it to expand. Privatization of government companies
will increase their efficiency and allow them to become more competitive.
Privatization under Israeli law (Government companies law – 1975) regards to
cancellation or reduction: of the government's share in voting control; or of it's
right to appoint directors for the company; or of government involvement; or
reduction by 10% or more the governments proportion of the company's share
capital or to effect a material reduction in the company's activities by transferring
affairs, assets to others or liquidation.
The government Companies authority (www.gca.gov.il in Hebrew) is the
responsible entity to promote and execute the privatization processes. M.I.
Holding Ltd and Inbal are the two additional government companies dealing with
privatization affairs – related to the sale of state shares in banks:
In total, the overall scale of privatization effected between 1986- June 2002
amounted to about US$8,740 million and 83 companies ceased to be
Government companies. In the year 2000 – 665.5 mil; 2001 – 44.8 mil; 1-6 2002
24 mil.
The main reason for the drop in 2001-2002 has been the deterioration that has
occurred in the market conditions, including the condition of the capital market in
Israel and the security situation.
Banks
Most of the banks in Israel became government owned following the Tel-Aviv
stock exchange collapse in 1983. In 1991 substantial privatization of the banks
began. This year the trend is continued.
Telecom and Energy
The telecommunications and energy sectors have been dominated by the
government through regulation and ownership of government companies. In
telecommunications government deregulated prices, privatized the mobile sector
and the international calls sector as well as sold off some of it's shares in the
incumbent fixed line telephone company - Bezeq.
The present
Under the budget report of 2003-04 The GCA will comprise a program for selling
government shares valued 1.58 billion US$ on the stock exchange between
2003-05.
Companies under privatization process
9) 1)
Bezeq – the Israel telecommunications company inc. The Government
owns 54.6% of the company. On August 2000 it was decided to sell a minimum
of 50.01%. In 2002 6 parties showed interest in the purchase. The tender did not
go through and it is now pending. In July 2003, Ministry of Finance prepares to
issue Bezeq shares:
http://www.globes.co.il/serveen/globes/docview.asp?did=702624&fid=942
10) 2)
El-Al – national carrier – on July 2002 a decision was made to privities
100% of the government holdings in 2 stages. In the first stage a maximum of
49%. The authority is looking to privatize El-Al through the Tel-Aviv stock
exchange. The privatization of El-Al is set in motion. El-Al will be privatized
through the Israel Stock exchange. For more information please refer to:
http://www.mof.gov.il/beinle/elal.htm
11) 3)
Bank Leumi - Minister of Finance Benjamin Netanyahu ordered officials
to expedite work on the privatization of Bank Leumi, with the aim of selling the
bank via the Tel Aviv Stock Exchange this year, the Ministry of Finance said
today in a statement. The privatization will not be conducted via the sale of a
controlling stake to a group, the ministry said. The government currently owns
40% of Bank Leumi, Israel’s second largest bank.
http://www.mof.gov.il/beinle/press89.htm
12) 4)
Zim – the national shipping company of Israel ltd. – on august 2000 a
decision was made to sell all government shares of Zim which comprise of
48.6%. four companies showed interest at the time. The tender is pending.
13) 5)
The company for atomization in the municipal authority – a decision to
privatize the company was made on Jan 2002.
14) 6)
Oil refineries – The shares will be sold off until the government has no
less than 1.01%
15) 7)
Israel aircraft Industries – 20% of the government shares will be sold
off.
16) 8)
The electric company – after implementation of the committee for
electricity reform decisions, up to 49% of the shares will be sold off.
Companies under consideration:
Tadmor – school for the hotel industry
The bank for Industry development
The agricultural bank
Ashot Ashkelon Industries
Pi Glilot pipes and terminals
The government company for medallions and coins.
The geophysical institute of Israel
Gaphim Inc.
Atarim – the company for development of tourist sites.
Sources: The Government Companies Authority, Ministry of Finance, the 20032004 budget report.
Complied by Ornit Avidar – Commercial Attaché – Hong Kong,