Nakash Brothers Sign Deal to Sell Control of Arkia Airlines
Translated & summarized from Davar by baba
The Nakash brothers, majority owners of Arkia Airlines, have signed a deal to sell a controlling stake to a new investor group led by Yariv Lerner. The airline has suffered significant losses, prompting the need for investment. While the deal aims to stabilize Arkia, its impact on employee stock ownership remains uncertain, a point of contention with the Histadrut labor union.
The story in 5 lines · by baba
- Nakash brothers agreed to sell controlling stake in Arkia Airlines to new investors.
- The investor group is led by Yariv Lerner, who will become the controlling shareholder.
- Arkia Airlines has incurred losses of approximately NIS 30 million in the past year.
- The impact of the deal on employee stock ownership is currently uncertain.
- The Histadrut labor union had previously opposed the sale, citing concerns for the company's future.
The Nakash brothers, who hold a 77.5% controlling stake in Arkia Airlines, announced Thursday they have signed an agreement to bring a new investor group into the company. The announcement came shortly after the Histadrut labor union declared a labor dispute, citing the Nakash brothers' opposition to a sale as endangering the company's future. Details of the deal are still being finalized, and its impact on employee stock is uncertain.
Under the agreement, Arkia, which has incurred significant losses over the past year, will be sold to an investor group led by Yariv Lerner, who is set to become the controlling shareholder and inject substantial capital. Other participants in the purchase include Einav Adib-Berrer, Kidan Dahari, and Yaron Adib, who are active in the real estate market. The Nakash brothers are expected to retain a small portion of their shares.
The investor group expressed confidence in Arkia and the Israeli aviation sector, stating their commitment is long-term and aimed at stabilizing and strengthening the company for the benefit of employees, passengers, and the Israeli economy. Arkia has reported losses of approximately NIS 30 million in the past year, with both management and employees acknowledging the need for significant investment.
However, the deal's effect on employee shares remains unclear. Arkia has a unique structure where an employee body, T.U.T. Corporation, holds about 22.5% of the company's shares. An earlier proposal by the Nakash brothers to inject capital that would dilute employee shares was met with protests and ultimately withdrawn by management. The question now is what role employees will play in the newly signed transaction.
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