El-Al has made an agreement in principle to acquire 24% of the shares of the tourism and aviation holding company held 50% by Nochi Dankner, and 50% by Avi Fisher. El-Al’s joining the company will create the largest Israeli group in the field of aviation, tourism and foreign airline representation.
The agreement gives El-Al a purchase option, prior to exercise of which an assessor will be appointed to precisely measure the value of the business. El-Al’s board yesterday appointed its finance committee to finalize the details of the deal.
The deal is assessed to be in the tens of millions of shekels. The group hold 40% of shares in Open-Sky, the largest company in Israel representing foreign airlines; 42.5% of the shares of Israir airline; and 11% of the shares of the Natour tourism agency.
Sales turnover of Open Sky is NIS 60 million, and Israir’s is also some NIS 60 million, while Natour’s sales in the first nine months of ’97 were NIS 148 million.
El-Al will acquire 12% of the shares held by Dankner and Fisher, so that each of them will now hold 38%. "Globes" was told by sources in the Dankner-Fisher group that funds from the deal will be used to continue the groups expansion. Contacts started in January this year, and El-Al’s general manager Yoel Feldschu was directly involved.
Approval must be sought from Restraint of Trade commissioner David Tadmor. Today, El-Al holds more than 40% of the market for aviation to and from Israel, and this deal is likely to increase it to more than 50%, making it a monopoly.
Published by Israel's Business Arena March 17, 1998