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Cabinet Approves: El Al To Issue Public Offering Israel today

2020-09-13T19:04:49.064Z


| TourismThe government approves the outline for the issuance of the national airline • El Al will issue shares to 44.9% of the company, worth $ 150 million If there are no last-minute surprises, the largest airline in Israel, El Al, will go public in the coming days. The government recently approved the outline, under which El Al will go public. This will be remembered, in contrast to what they would lik


The government approves the outline for the issuance of the national airline • El Al will issue shares to 44.9% of the company, worth $ 150 million

If there are no last-minute surprises, the largest airline in Israel, El Al, will go public in the coming days.

The government recently approved the outline, under which El Al will go public.

This will be remembered, in contrast to what they would like to see in the "Wings" company, which currently holds control of the company.

Photo: El Al Workers' Committee

A public offering means that anyone can buy shares in the company, even those in "Wings" would be happy not to.

The person who is expected to submit a proposal that will transfer 44.99 percent of the company to him and in fact transfer control to him is the ultra-Orthodox young man Eli Rosenberg, who added Jason Greenblatt to his ranks.

Rosenberg submitted several proposals that were not approved by the board of directors of El Al, but as part of a public offering - he will be able to purchase his share without obtaining the approval of the board of directors and thus control the national airline.



The offering is expected to last several days, during which the highest bids will be received.

Due to the fact that there are several groups interested in controlling the company, we may see bids higher than the value of the shares, which will result in a larger-than-expected inflow of funds.



As part of the IPO, El Al will issue $ 150 million in shares.

In the event that the public does not purchase all the shares, the state will purchase the difference, appoint a trustee on its behalf and sell the shares under obligation after a year and a half, in the hope of making a profit from the deal. 



As part of the company's efficiency program, El Al will lay off about 2,000 employees.

The company will reduce activity with suppliers, reduce its aircraft fleet and eliminate less profitable destinations.

Following the IPO, EL AL's management is expected to conclude a loan of $ 250 million with one of the banks, with the state guaranteeing 75% of the loan. 

Source: israelhayom

All life articles on 2020-09-13

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