Arkia Airline Control Shifts to Investor Group Led by Yariv Lerner
Translated & summarized from Mignews by baba
The Nakash brothers have sold their controlling stake in the Israeli airline Arkia to an investor group led by Yariv Lerner. The group will invest tens of millions of dollars to stabilize the company, which has reported over $30 million in losses this year. The deal comes amid labor disputes and concerns over employee stakes. The new owners aim for long-term investment in the airline.
The story in 5 lines · by baba
- The Nakash brothers sold their controlling stake in Israeli airline Arkia to an investor group led by Yariv Lerner.
- The new investors will inject tens of millions of dollars into Arkia to address its financial crisis.
- Arkia has incurred losses exceeding $30 million this year, causing capital deficits and cash flow issues.
- The deal was complicated by employee concerns over their 20% stake and a labor dispute with the Histadrut union.
- The investor group includes Einav Adiv-Barer, Kidan Dehari, Iron Adiv, and Yariv Lerner.
The controlling stake in the Israeli airline Arkia has been sold by the Nakash brothers to a group of investors headed by Yariv Lerner. The investors are committing tens of millions of dollars to the company to help it overcome a significant financial crisis. The deal was reported by the publication Calcalist.
The Nakash brothers, who previously held controlling ownership, signed an agreement to transfer control to Lerner's group. The investment aims to stabilize Arkia's operations and strengthen its financial position. The exact transaction value, share structure, and closing conditions have not yet been disclosed.
The purchasing group includes four businessmen: Einav Adiv-Barer, owner of Einav Medical Centers; Kidan Dehari and Iron Adiv, owners of real estate companies Yishpro and Tnuport; and Yariv Lerner, chairman and owner of Negev Group. The new owners expressed confidence in Israel's aviation industry and their intention for long-term investment, citing commitment to employees and passengers.
Arkia has faced severe financial difficulties this year, with losses exceeding $30 million, leading to capital deficits and cash flow problems. Previous attempts to raise funds were reportedly met with resistance from employees concerned about their 20% stake. The situation was further complicated when the Histadrut labor union declared a labor dispute over proposed efficiency measures, including layoffs and route cancellations.
The new ownership is tasked with resolving these accumulated issues and restoring stability to one of Israel's major air carriers.
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