The Companies Authority has approved the businessman to become the controlling owner of the airline • So far, El Al has not taken the offer seriously, because they did not know who was behind it.
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The Companies Authority will allow the ultra-Orthodox buyer Eli Rosenberg to purchase El Al and hold more than 40% of the company's shares.
This is a dramatic announcement because so far El Al has not taken his intentions seriously as it was not clear who is behind it and how much the state will allow such a thing to happen but now there is the official confirmation from the state that takes the potential purchase to a much more serious place.
Demonstration of El Al employees, archive - 30.4.2020 // Photo: El Al Employees Committee
Eli Rosenberg is an ultra-Orthodox young man living in Jerusalem and the son of Naftali Kenny Rosenberg, an ultra-Orthodox businessman from New York.
Eli Rosenberg deposited $ 15 million in a trust account to show his seriousness and even offered to immediately transfer $ 75 million to El Al for 44.99 percent of the company, which would give him control of the Israeli airline.
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Rosenberg is joined by the pilots, who are happy that the Histadrut has signed an agreement on their behalf with the current company's management. Those who are trying to prevent the purchase are the Borovich family, which controls the company through a wing company. Now, the move will lead to the possibility that Rosenberg will acquire the company in the expected share issue soon as part of the company’s streamlining process and its rescue outline that also includes a $ 250 million loan from the state.
On behalf of Eli Rosenberg, it was stated: "I thank the Companies Authority for the professional and in-depth examination. And now the moment of truth has arrived - my proposal is the only way to rehabilitate EL AL and march to its rightful place. The shares are against the inflow of NIS 260 million ($ 75 million) in favor of the company and the people of Israel, who are desperate for the national airline to be strong and stable. "