Arkia Employees Seek to Submit Competing Bid for Airline

Negotiations for the sale of the airline Arkia have entered their next phase after an emotional overnight session between employee representatives and a purchasing group led by Yariv Lerner, Kidan Dahari, Yaron Adib, and Einav Adib-Berrer. The employees' union, T.A.T., has until Monday afternoon to present a counteroffer that matches the bid submitted by the Nakash brothers. The talks concluded around 3 a.m. Concurrently, employee representatives are meeting with potential investors to assess their ability to match the Nakash offer, their plans for Arkia, and their proposed terms for employees. If a suitable investor is found with whom agreements can be reached on the company's and employees' future, their bid will be submitted by Monday.

The deal with the Nakash brothers involves a $45 million capital injection into Arkia. The purchasing group will contribute $30 million and gain control of the company, while the remaining funds will come from the Nakash brothers (Rafi, Joe, and Avi) and the state. The Nakash brothers will retain approximately 3% of the shares. The employees, who previously held about 22% through T.A.T., had their remaining stake unspecified in the deal announcement.

Lerner, chairman and owner of the Negev Ceramics group, was initially part of a group exploring a joint purchase with the employees, alongside the Verror family and Avi Elkiaim. Dahari and Adib, owners of real estate firms Yeshpro and Tanoport, were separately negotiating with Avi Khormero, who represented the Nakash brothers in the sale. Ultimately, Lerner joined forces with Dahari and Adib, and Einav Adib-Berrer, Yaron's sister and owner of medical centers, joined their group, placing the employees in negotiations with individuals they had recently considered as partners.

Last week, dozens of Arkia employees protested the potential dilution of their share ownership. Hours before the deal announcement, the Transportation Workers Union declared a labor dispute, alleging that the company's owners were pushing for workforce reductions and route cancellations without employee agreement.

Arkia is estimated to have lost approximately $30 million in the first three quarters of the year and could end it with a loss of $50 to $60 million. The company has previously stated that published estimates are not official figures. Even if a competing employee bid is not submitted by Monday afternoon, discussions with the group that signed with the Nakash brothers are ongoing, with one source involved in the negotiations expressing confidence in reaching an agreement.