Knafaim-Arkia Holdings (TASE: KNFM) yesterday announced that it had received in the past few days three new bids for its holdings in Arkia Airlines and tourism. Antitrust Authority director general Dror Strum ordered Knafaim to sell its other aviation interests when it acquired control of El Al Israel Airlines (TASE: ELAL).
Knafaim said one bid was for Arkia. The second was for Knafaim's stake in ISSTA Lines (TASE: ISTA), which was better than the current bid. The third bid was for Knafaim's holding in Maman Cargo Terminals and Handling (TASE: MMAN), which was also better than the current bid. Knafaim owns 75% of Arkia and 25% each of ISSTA and Maman Cargo.
The new bids were submitted after Knafaim two week ago announced a continuance in the sale of its holdings in Arkia, ISSTA, and Maman Cargo, and asked for new bids. Knafaim is also selling its 25% stakes in Aviation Links (TASE: AVIA) and Arnon Paz (1985) Ltd.
Zion Eini, an Israeli expatriate who has lived overseas for 16 years whose main business is real estate, has offered to buy Arkia. Six other bids have been submitted for the airline. Eini reportedly offered over $10 million for Arkia. The highest of the previous bids was about $10 million. Eini has apparently made the highest bid for the airline to date.
Two weeks ago, Knafaim, controlled by the Borovich family, decided to open negotiations with two of the consortium that bid for Arkia in the preliminary tender, while also asking for new bids. The deadline for the new bids was yesterday.
The two consortia continuing onto the next stage reportedly bid about $10 million each for Arkia. One bid is probably by Arkia employees, who already own 25% of the airline. The other is probably by a consortium led by the Nakash brothers, the owners of Jordache Enterprises Inc., a leading jeans manufacturer.
One of the other bids for Arkia was by a consortium headed by Caspi Aviation.
Last week, Knafaim announced that it was in advanced negotiations for the sale of its stake in Maman Cargo to Taavura Holdings and Naftali Investments. The Livnat family controls Taavura, and also owns part of the controlling interest in IDB Holding Corp. (TASE: IDBH). Oudi Recanati controls Naftali Investments. Maman Cargo operates the only cargo terminal currently in operation at Ben Gurion Airport.
Last week, Knafaim announced that another business entity wanting to acquire Maman Cargo was threatening legal action against Knafaim because of the latter's intention to sell Maman Cargo to Taavura and Naftali Investments. At the time, Knafaim said the claim was baseless.
If the Livnat family acquires Knafaim's 25% stake in Maman Cargo, it will control the company through Taavura, Multiple Investments and Development Ltd., and its partnership with Oudi Recanati.
Published by Globes [online], Israel business news - www.globes.co.il - on March 14, 2005