A consortium led by Milgam Ltd. won an auction on Sunday to purchase the Israel Postal Company with a bid of 461 million shekels ($125 million).
The figure is well below the estimated sale price of half a billion shekels.
The Israel Post will be fully transferred to the buyer in the coming months, according to the Israeli Communications Ministry.
The Israel Post has been caught up in a financial crisis since 2006, severely affecting service. The ministry decided on privatization to give it “freedom of action” to provide new services and adapt to the digital age.
“I congratulate Milgam on the win, and I hope that the privatization will be launched as soon as possible,” said Communications Minister Shlomo Karhi.
“I believe in a free and competitive market and I am sure that the privatization will bring a new management, a new approach and above all a faster and quality service to the citizens of Israel,” he added.
Ministry Director General Inbal Mashash added that “the privatization of the post office is good news for the public...Privatization will increase competition, enable growth and lead to improved service to the public.”
