NEW YORK (Dec. 15)
Formation of a new company in the United States with a share capital of $2,000,000 was announced today by Dr. Heinz Gruenbaum, of Tel Aviv, executive vice-president of the Palestine Economic Corporation in Israel, who is in this country on a brief visit.
The new company, Israel Enterprises, Inc., was formed through the initiative of the Palestine Economic Corporation, It will accept payment for its $100 par value shares in the form of Israel Bonds. Dr. Gruenbaum said that the Israel Bonds thus converted into stock of Israel Enterprises will “help to expand existing enterprises and establish new industries in Israel.”
In accordance with a recently-concluded agreement between the Israeli Ministry of Finance and Israel Enterprises, Inc., the new company will turn over the Israel Bonds it receives to the Israel Treasury for conversion into Israel bonds, and for investment in Government-approved enterprises.
The principal purpose of Israel Enterprises, Inc., it was explained, will be to invest in industries that are vital to the economic growth of Israel and which are expected to have immediate earnings. Israel Enterprises, Inc., will be entitled to receive dollar dividends up to 10 percent of the company’s capital investment in these approved enterprises.