Jerusalem, Dec. 19 - Israeli Accountant-General Shuki Oren has decided to exercise the government's rights in Tnuva, Israel's largest food company, the Finance Ministry said on Thursday.
This will enable the sale of Tnuva to private equity firm Apax Partners to proceed, the ministry said.
The government will exercise participation units that the kibbutzim, or collective farms, which own Tnuva allocated to the government in a debt-writedown agreement.
Apax won a tender in November 2006 to buy at least 51 percent of Tnuva in a bid that valued the food and dairy group at $1.03 billion.
Based on the deal's value, the government's share in Tnuva is worth about $67 million.
Apax has agreed with Mivtach Shamir Holdings Ltd. to distribute the shares between them, with Apax holding the larger stake.