IDB seen cutting price for Israir sale

Yuval Cohen

IDB is trying to arouse the Fortissimo Capital fund's interest in the sale.

IDB Development, controlled by Eduardo Elsztain, is continuing its search for a buyer for Israir, with the aim of concluding a deal and completing it in 2020. IDB representatives recently contacted the Fortissimo Capital investment fund, led by Yuval Cohen, about the sale of Israir, and the parties have held a number of meetings on the subject. No official offer has been made yet, however.

IDB published its financial reports in late November for the third quarter of 2019, with projected cash flow for the next two years attached. According to this appendix, IDB hopes to get NIS 186 million ($53 million) for Israir, but is likely to agree to a lower price of $40-45 million in order to get its hands on cash quickly.

IDB has negotiated to sell Israir at a higher price in recent years, but the situation has worsened, following the blow suffered by Israir's results as a result of the closure of Sde Dov Airport and the old Eilat Airport. In its reports for the third quarter of 2018, for example, IDB predicted that it would get NIS 225 million ($64 million) for Israir.

Israir's sales turnover totaled $129 million in the third quarter of 2019, the same as in the corresponding quarter last year, despite the closing down of Sde Dov Airport to domestic flights and the timing of the Jewish holidays, which fell in October this year. Third quarter gross profit was also stable at $22 million.

Published by Globes, Israel business news - en.globes.co.il - on January 6, 2020

© Copyright of Globes Publisher Itonut (1983) Ltd. 2020

 
Yuval Cohen
Yuval Cohen
Twitter Facebook Linkedin RSS Newsletters Israel Business Conference 2018