El Al in talks on sale as state management looms


El Al Israel Airlines Ltd. (TASE: ELAL) introduced yesterday night that it had reached settlement with the Ministry of Finance on a rescue plan that may most likely outcome within the airline being nationalized. On the identical time, nonetheless, El Al continues to discover the opportunity of a sale. Inside the previous few days, a businessperson, who refuses to be named, has provided to purchase the airline and has even appointed CPA Reem Aminoach, a former financial guide to the IDF chief of workers, to conduct negotiations on his behalf.




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The chance is being examined of transferring the controlling shares from Knafaim Holdings, by way of which the Borovich household controls El Al, to a trustee for an interim interval. The perimeters have approached Israel Aerospace Industries chairperson Harel Locker, a former director common of the Prime Minister’s Workplace, to behave as trustee.

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This isn’t a case of basic trusteeship. If Locker is appointed, he’ll maintain the shares for a brief interval solely, till the customer obtains a management allow from the state, with the safety checks that that entails.

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It’s not clear why El Al rushed to announce that it might undertake the Ministry of Finance plan when negotiations are going down with a possible purchaser. It might be that the purpose is to place stress on the customer to finish a deal. Both approach, whether or not the end result is nationalization or an acquisition, the Borovich household will lose management of the airline.

Harel Locker declined to touch upon the report.

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Revealed by Globes, Israel enterprise information – en.globes.co.il – on July 7, 2020

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© Copyright of Globes Writer Itonut (1983) Ltd. 2020