Arkia Shareholders Offer $3.9 Million Injection, Diluting Employee Stake
Translated & summarized from TheMarker by baba
Arkia Airlines' board will vote Sunday on a $3.9 million capital injection from shareholders that would dilute the employees' 22% stake. Employees call the dilution illegal and threaten a strike, while a potential investor group awaits due diligence. The move could facilitate a sale to Israir or another buyer.
The story in 5 lines · by baba
- Arkia's board to vote Sunday on a $3.9 million capital injection from shareholders.
- The injection would fully dilute the employees' 22% stake in the airline.
- Employees claim the dilution is illegal and threaten to strike.
- A potential investor group has an agreement in principle, pending due diligence.
- The move could clear the path for a sale to Israir or another party.
The board of directors of Arkia Airlines is scheduled to convene on Sunday to decide whether to approve a $3.9 million capital injection from shareholders, the Nakash brothers, which would fully dilute the employees' 22% stake in the company. This dilution, if enacted, could pave the way for a deal with Israir Airlines or another entity. The employees contend that the dilution is illegal and are threatening a strike. A group of investors brought in by the employees has reached a preliminary agreement to purchase the company, but due diligence has not yet been completed.
