El Al board questions seriousness of Rozenberg offer

El Al plane  / Photo: Yoav Yaari

Eli Rozenberg: Instead of saving the company, El Al continues on its track of extorting money out of the government.

While the Government Companies Authority is yet to grant a permit to Eli Rozenberg to buy El Al Israel Airlines Ltd. (TASE: ELAL), the parties to the proposed deal are bickering.

In a letter from El Al's board of directors, Adv. Dori Klagsbald has said that Rozenberg's bid raises questions and doubts about its seriousness and the identity of the buyer behind the offer. It is also unclear, writes Klagsbald, what it means to buy the company 'as is' and without seeing 'presentations.'

For his part Eli Rozenberg has slammed El Al's board, "Instead of saving the company, El Al continues on its track towards extorting money out of the government."

The Government Companies Authority, which has a golden share in the airline, has for the past two weeks been discussing Rozenberg's request for a permit. Rozenberg's offer to buy El Al is the only bid on the table.

Eli Rozenberg is the son of US businessman Kenny Rozenberg. Through the Shibolet & Co. law firm, Eli Rozenberg has submitted a bid to buy 44.99% of El Al for $75 million, as is, without the need for any presentations.

To prove the seriousness of the offer to El Al's board of directors, a trustee account has been opened in which $15 million has been deposited. The offer is valid until August 31, 2020.

This is the same date on which the Ministry of Finance wants El Al to complete the assistance package it has agreed, which would involve nationalization. El Al would take loans of $250 million, of which the government would guarantee 75% and raise $150 million on the Tel Aviv Stock Exchange, with all the shares likely bought by the government.

Sources close to Eli Rozenberg say that he feels the El Al board of directors is trying to avoid a meaningful discussion about the offer.

Published by Globes, Israel business news - en.globes.co.il - on July 27, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020

El Al plane  / Photo: Yoav Yaari
El Al plane / Photo: Yoav Yaari
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