The transfer of control of El Al Israel Airlines Ltd. (TASE: ELAL) to Eli Rozenberg is getting closer: the Government Companies Authority supports the award of a control permit to Rozenberg, and has requested the minsters who are required to sign the transfer of control from Knafaim Holdings Ltd. (TASE: KNFM) to do so "in the light of El Al's situation."
"Globes" has seen a letter sent by Government Companies Authority director general Yaakov Kvint to the prime minister and to the ministers of finance, transport and digital affairs, whose signatures are required in order to approve the transfer of control in the company. Rozenberg bought El Al shares to the tune of NIS 107 million in the public equity offering that El Al held two weeks ago. These share give him a controlling 43% stake in the airline.
The document setting out the permit that the Government Companies Authority supports states that Rozenberg approached the Authority in late June and declared that he would receive the money to buy control of El Al from his father, Kenny Rozenberg, a US resident who is not an Israeli citizen and who therefore cannot himself receive control of El Al under the terms of the golden share held by the state.
The agencies approached by the Government Companies Authority (the Ministry of Defense, the Israel Security Agency, the Ministry of Finance, the Ministry of Transport, the Competition Authority, and the Israel Police) expressed no objection, apart from a reservation by the Ministry of Transport director general concerning Eli Rozenberg's lack of business experience, and a requirement that the CEO of El Al and most of its board of directors should have proven experience. The police also raised a reservation concerning an investigation underway in which a company owned by Kenny Rozenberg is involved. The Government Companies Authority nevertheless believes that Eli Rozenberg should be allowed to control El Al, and that his father's involvement in the company should be restricted.
Kvint concludes by stressing the urgency of the matter in view of "El Al's complicated business and financial position, and the fact that until consent is given, the applicant (Rozenberg) may not exercise the means of control that he holds in El Al, in particular to appoint directors on his behalf.
Published by Globes, Israel business news - en.globes.co.il - on October 1, 2020
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