Orthodox Entrepreneur Offers to Buy Arkia Airline, Demands Shabbat Flights Cease
Translated & summarized from Arutz Sheva by baba
Orthodox entrepreneur Ezra Ungar has submitted a new offer to buy Arkia Airlines, conditioned on the airline ceasing flights on Saturdays. The proposal includes a $30 million investment and employee protections, but requires employees to significantly reduce their shareholding. A competing offer from other investors has a deadline of Monday for employees to present an alternative, and Ungar is seeking additional investors for his bid.
The story in 5 lines · by baba
- Orthodox entrepreneur Ezra Ungar offered to buy Arkia Airlines, demanding an end to Saturday flights.
- Ungar's proposal includes a $30 million investment and employee board representation.
- Employees would have to give up most of their 22% stake in Arkia.
- A rival investor group has given Arkia employees until Monday to present a competing offer.
- Ungar previously attempted to purchase the airline four months ago.
New York-based Orthodox entrepreneur Ezra Ungar has submitted a revised offer to acquire control of Arkia Airlines, proposing a $30 million capital injection, board representation for employees, and protection against layoffs. The central condition of his bid is that the airline must cease all flight operations on Saturdays.
Ungar's proposal was presented on Friday to representatives of T.A.T., a body holding 22% of Arkia's shares on behalf of its employees. The offer includes commitments to safeguard employees' jobs and integrate a worker representative onto the company's board. However, employees would be required to relinquish most of their current shareholdings, with Ungar suggesting they retain only about 3%.
A key stipulation in Ungar's offer is the cessation of flights on the Sabbath, a move that would significantly alter Arkia's operational policy. Employee representatives, led by Avi Edri, chairman of T.A.T., have not yet responded to the proposal.
The decision is imminent, as a competing investor group, which had previously signed an agreement to purchase Arkia, has given employees until Monday to present an alternative offer under identical terms. This group, comprising Yariv Lerner, Kidan Dahari, Yaron Adib, and Einav Adib-Berrer, has agreed to withdraw their bid if the employees can secure a superior competing offer.
This is not Ungar's first attempt to acquire Arkia; he made a previous offer about four months ago. Since then, the airline's financial situation has worsened, necessitating urgent funding. The current agreement with the competing buyers involves a $30 million investment, with the Nakash brothers expected to contribute $8.5 million and waive a $4.5 million debt, while the state is slated to provide an additional $7.8 million. Ungar's renewed offer also centers on a $30 million injection, and he is reportedly seeking additional investors to finance the deal.
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