Israir Must Disclose Additional Details on Stakeholder Deal with Rami Levy Following Securities Authority Intervention

Israir, controlled 57.16% by Rami Levy, and Rami Levy Shvikum Hashikma, controlled 39.91% by Levy, have been compelled by the Israel Securities Authority to postpone their shareholders meeting to approve a related-party transaction involving Rami Levy's customer club. Israir initially classified the deal as non-material, but the Authority deemed it material, leading to two postponements of the meeting.

The transaction, signed at the end of May, involves Israir Aviation purchasing 8% of the customer club from Rami Levy Shvikum Hashikma for 11.25 million shekels, and an additional 2% from Isracard for 8.75 million shekels, totaling 20 million shekels. The agreement stipulates that the club's operating budget will be funded in the first year by Rami Levy Shvikum Hashikma and Isracard each covering 45%, and Israir covering the remaining 10%. Ten million shekels of this budget will be used to buy flight tickets from Israir Aviation to European destinations excluding London, priced at $270 per ticket including taxes and fees. From the second year onward, the budget will be financed by the club's revenues.

The shareholders meeting was first postponed by nine days due to ongoing discussions with the Securities Authority, then postponed again to August for the same reason. The Authority's objection centers on the transaction's valuation and Israir's classification of it as non-material. The Authority demanded that Israir disclose additional commercial data and details about the deal. Recently, the parties reached an understanding, and Israir is expected to publish the requested information, which it had preferred to keep confidential.