The lawyer acting for Eli Rozenberg, who has bid to buy El Al Israel Airlines Ltd. (TASE: ELAL), has asked the board to summon his client to a meeting so he can explain all the details of his offer.
Adv. Adi Zaltzman of Shibolet & Co. has written to El Al's board asking them to invite Rozenberg to a meeting so that he can answer all questions and dispel all doubts about the offer and thus overcome all difficulties as quickly as possible. "This will bring an immediate injection by the investor of $75 million."
Rozenberg, the son of New York based businessman Kenny Rozenberg, has offered $75 million for a 44.99% controlling stake in the financially troubled airline.
Adv. Zaltzman was responding to a letter yesterday from the legal counsel of El Al's board of directors, Adv. Dori Klagsbald. He wrote that Rozenberg's bid raised 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.'
To prove the seriousness of the offer to El Al's board of directors, Rozenberg has set up a trustee account 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.
Published by Globes, Israel business news - en.globes.co.il - on July 28, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020