El Al will buy all Arkia's shares in exchange for an allocation of up to 14% of its own equity.
El Al Israel Airlines Ltd. (TASE:ELAL) has notified the Tel Aviv Stock Exchange (TASE) that it has signed a non-binding memorandum of understanding (MoU) to buy all the shares of Arkia Israeli Airlines Ltd. in exchange for an allocation of 10% of its own equity. Options could bring the share allocation up to 14%.
The agreement must be approved by Arkia's employees, who have a 30% stake in the company, and the Israel Competition Authority.
The deal values Arkia, which will become a subsidiary of El Al, at between NIS 85-120 million.
The deal stipulates that Arkia will continue operating as a separate brand with its own separate staff, probably as the low-cost arm of El Al.
Published by Globes, Israel business news - en.globes.co.il - on February 3, 2022.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2022.
El Al Photo: PR Danny Sadeh