El Al's potential buyer requests permit to control airline
The representative of the investor who is interested in buying financially troubled El Al Israel Airlines Ltd. has submitted an official request to the Government Companies Authority to receive a permit to control the flag carrier. However, Government Companies Authority head Yaakov Kvint has first directed the buyer to notify El Al itself, Trend reports with reference to Globes.
The potential buyer's representative Brig. Gen (res.) Reem Aminoach, has asked to begin the proceedings that would allow the investor to receive control of the airline, sources inform "Globes." Kvint told the representative to submit the request to El Al's company secretary, according to the airline's regulations, which has been done.
Meanwhile, the handling of the request has been halted after El Al's board of directors voted to accept the State's rescue plan and begin the process of a public offering on the Tel Aviv Stock Exchange (TASE) - a process which is expected to result in nationalization, with the government buying most of the new shares.
Under the Ministry of Finance rescue plan, the government would guarantee 75% of a $250 million loan and $150 million would be offered in new shares, with the government buying all shares not purchased by the public.
The potential buyer is believed to prefer buying control of El Al without the need for a public offering, even though this might be a more expensive way of accomplishing the acquisition.