The Egged public bus cooperative is on the way to becoming a limited company after a majority vote approving the deal by 91 percent of its 1,300 members last week.
The operating agreement was signed with the state last November, according to a report published on the Globes business news site.
Each member of the Egged cooperative will receive NIS 1 million from the restructuring, and become a shareholder in the new company. Shareholders will also be able to sell their additional shares, according to the agreement.
By the end of 2030, all Egged bus routes will be opened up to competition. Tenders are to be published this year for the operation of 80 routes in Jerusalem, comprising half of the public transportation services in the capital.