The Ministry of Finance has proposed that El Al Israel Airlines Ltd. (TASE: ELAL) receive a $250 million loan instead of the $400 million it is asking for. The remaining $150 would be raised in an offering on the Tel Aviv Stock Exchange with the State committing to buy any shares not purchased by the public. The Borovitz family, which currently has a controlling stake in the airline, is not expected to participate in the offering, and their stake will be diluted. This could result in the government gaining control of El Al, 15 years after completion of the privatization of the airline. El Al is considering the offer. RELATED ARTICLES Katz tells Treasury officials to expedite El Al aid talks El Al extends passenger flight suspension until June 20 'Going concern' warning for El Al as liquidation looms Treasury sets tough terms for El Al loan guarantees El Al notified the Tel Aviv Stock Exchange, "Any of the aforementioned shares bought by the State would be deposited with a trustee whose role and powers would be set by the State until the date of the offering and a date would be set for the trustee to sell the shares and the way the sale will be executed." Any such arrangement would be subject to agreement by El Al, the cabinet, and the Knesset Finance Committee. In addition, El Al and its employees would need to sign a collective labor agreement that would include the required streamlining. Published by Globes, Israel business news - en.globes.co.il - on June 7, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020
