Billionaire Poju Zabludowicz, one of the largest shareholders in El Al Israel Airlines Ltd. (TASE: ELAL) through parent company Knafaim Holdings Ltd. (TASE: KNFM), has sold most of his holdings in the company. Knafaim reported that Zabludowicz yesterday sold 10% of the shares for NIS 23 million in an off-floor deal, leaving him with 3% of the company, meaning that he was no longer a party at interest. The largest shareholders in Knafaim are Tami Moses Borowitz (23%) and her husband David Borowitz (9%).
The sale was mostly to investment institutions at a share price of nearly NIS 14, 5% lower than the share price of Knafaim today. Tami Borowitz bought 0.5% for just over NIS 1 million, while smaller amounts were purchased by director Eran Ilan and his sister-in-law, Dafna Arnon, who are part of the controlling core in Knafaim.
Knafaim said that the sale of shares by Zabludowicz, a Jewish businessperson, real estate tycoon, and hotelier born in Finland "ended the unilateral undertaking (from August 2013) given to Zabludowicz by the Borowitz family concerning the appointment of directors." The sale was carried out by Barak Capital Underwriting.
In addition to being the controlling shareholder in El Al, Knafaim also leases airplanes through Global Knafaim, In view of El Al's persistently poor results, the Knafaim share lost 25% of its value in the past year and 35% in the past three years, reducing its market cap to NIS 230 million.
Knafaim's revenue rose 4% to $1.7 billion in the first nine months of 2018, but its operating profit declined and its net profit crashed 75% to less than $3 million.
El Al lost $21 million in January-September 2018, compared with a $35 million profit in the corresponding period in 2017. El Al's share price dropped 15% in the past year and 50% in the past three years, cutting its market cap to NIS 600 million.
Published by Globes, Israel business news - en.globes.co.il - on January 28, 2019
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