Israeli Airline El Al to be Nationalized
El Al's Board of Directors ruled on Sunday evening in favor of the outlay the Finance Ministry suggested in order to keep the airline in business during the global coronavirus crisis, and the ongoing pilots’ strike that halted all operations.
The state will guarantee a $250 million loan and will purchase $150 million worth of stocks in the company, meaning it would control 61% of El Al. The process of releasing these new stocks for the state to buy them is expected to be completed by early October.
The goal is that, when the company is stable, an outside investor would purchase it. An unnamed Israeli citizen had already made inquires into the matter, Haaretz reported last week.
The decision ends 15 years during which the firm was controlled by Knafaim Holdings – specifically, by David Borowitz and his wife Tami Moses Borowitz who together controlled 32% of the shares. (JPost / VFI News)