Arkia Deal Secured with $45 Million Injection from Buyers and Nachsh Brothers
Translated & summarized from Calcalist by baba
A deal to acquire the Israeli airline Arkia has been finalized, injecting $45 million into the company. Buyers will provide $30 million, the Nachsh brothers $8.5 million, and the Ministry of Finance $7.8 million. The deal structure involves Kidan Dahari and Yaron Adib holding 50%, Yariv Lerner 35%, and Einat Adib Barrer approximately 15%. The employees' 22% stake is pending approval, and negotiations are expected to secure their cooperation.
The story in 5 lines · by baba
- Arkia acquisition finalized with $45 million injection from buyers and Nachsh brothers.
- Buyers will inject $30 million, Nachsh brothers $8.5 million, and Ministry of Finance $7.8 million.
- Kidan Dahari and Yaron Adib will hold 50%, Yariv Lerner 35%, and Einat Adib Barrer 15%.
- Employees' 22% stake requires approval, with negotiations expected for their cooperation.
- Nachsh brothers will retain a 3% stake in Arkia due to US business interests.
A deal to acquire the Israeli airline Arkia will inject $45 million into the company. The buyers have committed to providing $30 million, with the Nachsh brothers surprisingly also contributing $8.5 million. The Ministry of Finance will add $7.8 million, a commitment contingent on the Nachsh brothers' investment.
The buyers were unwilling to invest more than $30 million, anticipating future capital needs, while the Nachsh brothers agreed to their contribution to ensure the $45 million required for Arkia's continued operation. Negotiations over several days were led by Kidan Dahari and Yaron Adib, representing the buyers, who reached an agreement with Yariv Lerner yesterday to join the deal. Lerner had initially competed with the Varur family and Avi Elkiaim for a separate deal with the employees but ultimately partnered with Dahari and Adib due to the greater certainty of their proposed transaction.
Initially, Lerner was set to hold 50% of the deal, with Dahari and Adib holding the other 50%. However, Einat Adib Barrer, Adib's sister, joined the deal with her husband, who own TLV Hospital. She will hold approximately 15% of the shares, taken from Lerner's portion, reducing his stake to 35%. Dahari and Adib, owners of Tanuport, will hold 50% of the shares, executing the deal privately. These stakes do not include the employees' 22% share, which they can retain if they contribute their proportional share to the deal.
The deal still requires employee approval. The employees are in a difficult position as the alternative buyers, Varur and Elkiaim, need Lerner's expertise and capital. Without Lerner, there is no viable alternative buyer for the employees. The employees could obstruct the deal, and intensive negotiations are expected to secure their cooperation, as all buyers require it. Notably, the Nachsh brothers will retain a 3% stake in Arkia, reportedly due to tax matters and regulatory requirements in the United States, where their businesses are concentrated.
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