JERUSALEM, Feb 10 (Reuters) - Israeli defense company

Rafael Advanced Defense Systems could begin its privatization as

early as late 2026, the Iron Dome missile defense maker's

chairman told Reuters on Tuesday.

"We are already working on it," Rafael's ( RFL ) ‌Chairman Yuval

Steinitz told Reuters in an interview.

Rafael ( RFL ), which created Israel's Iron Dome missile defense

system ​as well as a new Iron Beam anti-missile laser, is ‍valued

at about $10 billion.

Steinitz said the first phase would ⁠be partial

privatization, in ⁠which the government would retain control of

more than 50 percent of the company.

"Still, it ‌will take some time, but ​I believe that we might

be able to conduct the first phase already, towards the end of

2026 or beginning ⁠of 2027," Steinitz said.

Last month, ‍Reuters reported ​that Israel had begun the

process for the long-awaited privatization of two of its largest

state-owned defense companies. Rafael ( RFL ) did not ‍comment on the

report or give a timeline for privatization.

Roi Kahlon, director of the Government Companies Authority,

told Reuters in January that union and regulatory issues should

be resolved in the next few months to allow initial public

offerings by Israel Aerospace Industries (IAI) and Rafael ( RFL ) ​in ‍the

second quarter.

Defence privatisation has been discussed on and off for the

past 20 years, but robust financial results bolstered by

Israel's ​two-year war with Palestinian militant group Hamas in

Gaza have strengthened the case to act now.

The government plans an initial sale of 25-30% of each

company on the Tel Aviv Stock Exchange in small tranches this

year and next to avoid overwhelming the market and to retain

controlling stakes for now.

"If ​we want to remain very efficient and very flexible and

to be able to compete to be even more successful than today, we

need to privatize Rafael ( RFL ), at ‍least partially," Steinitz said.