Sapir to Treasury: El Al board chose my bid

El Al plane  / Photo: Yoav Yaari

El Al chairman Yehuda Levy is encouraging David Sapir to obtain a $400 million loan for the airline from Deutsche Bank.

Israeli-Russian businessman David Sapir who is seeking to buy 38% of El Al Israel Airlines Ltd. (TASE: ELAL) and become equal controlling shareholder with Knafaim Holdings Ltd. (TASE: KNFM) has told Ministry of Finance director general Keren Terner-Eyal that, "El Al's board of directors has chosen the bid that we offered."

Sapir stressed that, "The investment reflects a 20% premium on the value of the share's market price." In a letter signed by his legal representatives Advs. Shimshon Chen and Lior Shaby, Sapir says that the contacts with El Al have borne fruit, and that, "in order to complete the capital structure as sketched out by the State, an offering will also be conducted."

The plan proposed by Sapir also includes a $400 million loan from a foreign bank (probably Deutsche Bank). Sapir describes the plan as "incredibly good for the situation of El Al while recognizing that this is the right plan for El Al for both the short term and the long term." Consequently, he says that El Al's board of directors has chosen to support him.

In a letter that Sapir received from El Al chairman Yehudah Levy, he certainly receives positive indications. Levy wrote, "The board of directors encourages you to immediately begin in your contacts with European banks to extend financing to El Al and lead the company to meet on this issue soon with the Ministry of Finance teams."

Regarding the loan that Sapir has promised from a foreign bank on better terms that financing institutions in Israel, Sapir said, "We are on the verge of signing agreements with such a bank."

Sapir's representatives added that the proposal he is offering, "Reduces the State's exposure in line with the situation of El Al. In these circumstances, and since my client is still waiting for Knafaim Holdings to receive an agreement in principle for joint control, we would be grateful for coordinating an urgent meeting together with El Al's representatives in order to present this agreement - as long as it is acceptable."

Published by Globes, Israel business news - en.globes.co.il - on September 7, 2020 © Copyright of Globes Publisher Itonut (1983) Ltd. 2020

El Al plane  / Photo: Yoav Yaari
El Al plane / Photo: Yoav Yaari
Twitter Facebook Linkedin RSS Newsletters גלובס Israel Business Conference 2018