Israel’s Ministry of Agriculture plans to sell the government’s 50% holding in Agrexco, the country’s largest agricultural export company. According to agriculture minister Shalom Simhon, the privatisation of Agrexco calls also for the sale of Tnuva‘s 25% stake at the company. Agrexco by-laws stipulate that the government must sell its shares to the boards, which are statutory bodies, at their nominal price of one Shekel.
Go deeper with GlobalData
The agricultural production boards – the Flower Board, the Vegetable Board and the Fruit Board, which together own 25% shares of Agrexco – have the right of first refusal to the government’s shares. Agrexco, which plans to export during the 2001/2002 season 250,000 tonnes of fresh and processed produce, expects sales to amount to US$550m.
The company, which gets over 200 different products from nearly 4,000 farmers, has almost no assets, except for a freight company estimated to be worth between US$30m and US$50m upon privatisation. Agrexco’s main assets are its reputation, the long-term export agreements with buyers in Europe, the USA and the Far East, warehouses in Israel and abroad and its prestigious Carmel brand.
By Aaron Priel, just-food.com correspondent
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
