FARNBOROUGH — The CEO of Israeli giant Rafael is “very optimistic” than the government-controlled firm may be ready to go private before the end of the year, a move he described as vital for the future of the company.
In a sit down with Breaking Defense during last week’s Farnborough Airshow, Yoav Tourgeman said his company has seen 30 percent growth year over year, but that to keep that going, Rafael needs a “more flexible set of rules” about how it can invest than the Israeli government allows.
“If I decide to buy a company, [as a private firm] it’s my decision, I will do it a week later,” he said. “If you do it through the government, you have to get to the government to get the approval,” which comes with a different set of requirements. “So it slows down the processes.”
Competitor Israeli Aerospace Industries (IAI) is also moving towards the IPO. Tourgeman said it would be “better” if the two companies can align moving to the stock market together but acknowledged that may not happen logistically.
He noted that while IAI has been eyeing an IPO for longer than Rafael and so is more prepared, the two have different relationships with their workforce unions. IAI’s is more politically active, he said, which may cause the company to move more slowly than Rafael, whose union is more focused on workforce issues.
