Arkia's merger into listed shell company cancelled

Arkia  credit: PR
Arkia credit: PR

Technoplus Ventures has notified the Tel Aviv Stock Exchange that negotiations with Arkia have ceased.

The merger of Arkia Israeli Airlines Ltd. into stock market shell company Technoplus Ventures has collapsed. Technoplus has notified the Tel Aviv Stock Exchange that negotiations with Arkia have ceased. Arkia is owned by the Nakash Brothers group (70%) and by the airline’s employees (30%). The sides have been in talks since late last year.

In the eight months since the now cancelled merger deal was first reported, the aviation industry worldwide and in Israel has undergone impressive recovery, and the share prices of Israel’s other two airlines, Israir and El Al, which are traded on the Tel Aviv Stock Exchange, have responded accordingly. The share price of El Al, controlled by Kenny Rozenberg, has risen 66% so far this year, and its current market cap is about NIS 1.1 billion. Israir Group, controlled by retail magnate Rami Levy, has risen by 72% in the same period, and its market cap stands at NIS 441 million.

It is therefore no wonder that Technoplus Ventures shareholders responded with disappointment to the company’s announcement, and the company’s share price fell 11%, giving it a market cap of NIS 28 million.

Arkia, which also sells vacation packages, was founded in 1949. It operates seven aircraft - three Embraer E-195, an Embraer E-190, and three Airbus A-321. The company was acquired by Nakash Brothers in 2006. Besides flight between Tel Aviv and Eilat, it flies to various international destinations, such as Amsterdam, Rome, Paris, Zanzibar, Tbilisi, Crete, Cyprus, Istanbul, and Abu Dhabi. Arkia also has a subsidiary that maintains and overhauls light and medium-size aircraft.

Published by Globes, Israel business news - en.globes.co.il - on August 20, 2023.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2023.

 
Arkia  credit: PR
Arkia credit: PR
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