Company: The dividend will be paid by year-end.
Sources inform ''Globes'' that Oil Refineries Haifa is delaying payment of a NIS 2.7 billion dividend to the state because of cash flow management problems and procedural matters.
The Ministry of Finance has criticized the company, saying that its board approved the dividend two months ago, but has not yet transferred the money.
Oil Refineries Haifa confirmed the report, saying that the dividend would be paid by year-end. Sources at the company said that the dividend was very large, even for a company of Oil Refineries Haifa’s size. The company added that it recently had to pay NIS 700 million in capital gains taxes on the sale of Oil Refineries Ashdod, which reduced its available cash.
The Government Companies Authority, which managed the sale of Oil Refineries Ashdod, is now moving forward on the privatization of Oil Refineries Haifa, and backs the position of the company.
Published by Globes [online], Israel business news - www.globes.co.il - on December 24, 2006
© Copyright of Globes Publisher Itonut (1983) Ltd. 2006