Arkia Employees Seek to Submit Competing Bid for Airline
Translated & summarized from Walla by baba
Arkia airline employees have until Monday afternoon to submit a competing bid to purchase the company, following a deal with the Nakash brothers. The employees are in negotiations with potential investors to match the current offer, which includes a $45 million cash injection. The airline faces significant financial losses, estimated between $30 million and $60 million this year. Despite the looming deadline, talks with the current purchasing group are continuing.
The story in 5 lines · by baba
- Arkia employees have until Monday afternoon to submit a competing purchase offer for the airline.
- The current deal involves a $45 million cash injection and the Nakash brothers retaining a 3% stake.
- Employees are negotiating with potential investors to match the existing bid and secure their future.
- Arkia is facing significant financial losses, estimated between $30 million and $60 million this year.
- The Transport Workers Union has declared a labor dispute over workforce reductions and route cancellations.
Following an emotional overnight negotiation, representatives of Arkia airline employees have three days to submit a competing offer to purchase the company. The employees' union, Tu't, is in talks with potential investors to match the bid submitted by the Nakash brothers. The current deal involves a $45 million cash injection into Arkia, with the Nakash brothers retaining a 3% stake. The employees, who previously held a 22% share through Tu't, are negotiating their future stake and employment terms.
The employees are now negotiating with a purchasing group that includes Yariv Lerner, Kidan Dahari, Yaron Adib, and Einav Adib-Berrer. Notably, Lerner was previously part of a group exploring a joint bid with the employees, alongside the Varor family and Avi Elkiam. Dahari and Adib, owners of real estate companies Yeshpro and Tanuport, had been in separate negotiations with Avi Hurumero, who represented the Nakash brothers in the sale.
Last week, dozens of employees protested against plans to dilute their shareholding. The Transport Workers Union in the Histadrut declared a labor dispute, citing the company's management for proceeding with workforce reductions and route cancellations without employee agreement. Arkia is estimated to have lost between $30 million and $60 million in the first three quarters of the year.
Even if a competing offer is not submitted by Monday afternoon, negotiations with the group that signed with the Nakash brothers are ongoing, with a source involved in the talks expressing optimism about reaching an agreement.
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