Nakash family bids to merge Israir with Arkia

Arkia / Photo: Danny Sadeh

The bid for Israir to the court appointed trustee is at a company valuation of NIS 140 million.

The Nakash family is bidding to merge Israir Airlines and Tourism Ltd. with Arkia Airlines Ltd., in which it holds a 70% stake - the other 30% of Arkia is owned by the employees. The Nakash family has submitted a bid to the court appointed trustee of parent company IDB Development Adv. Ofir Naor at a company valuation for Israir of NIS 140 million.

The deadline for submitting bids in the auction for Israir is tomorrow. Rami Levy and Shalom Haim have offered NIS 70 million and several Dubai-based companies - NY Koen Group and Al Habtoor - are also reportedly preparing bids. Amnon Sela, owner of the Amnon Mesilot Group, is also expected to bid.

Arkia chairman Gadi Tepper said, "The merger between Israir and Arkia would create a strong, dynamic organization with a large fleet, excellent ground and air staff, a great marketing network and sound financial backing, which would make the merged company a strong and powerful player against expected and existing competition. Popular tourism will be the first in the aviation sector to come out of the Covid-19 crisis and we will be there as a strong company with excellent employees."

The merger will have major cost savings in management and organization for both airlines.

Published by Globes, Israel business news - en.globes.co.il - on November 8, 2020

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

Arkia / Photo: Danny Sadeh
Arkia / Photo: Danny Sadeh
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018