not everywhere· Economy· Updated 12:33

Arkia Employees Seek New Investor to Block Sale Deal

Arkia airline employees have until Monday afternoon to submit a competing bid to purchase the company, following a deal signed by the current owners, the Nakash brothers, to sell their controlling stake. The employees' union, which holds a 22.14% stake in the airline, is racing to find alternative investors to match the current offer and protect their shares from dilution.

5 newsrooms · 1 language · since 10:14

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Arkia Employees Seek New Investor to Block Sale Deal — Illustration by baba

What happened

01Arkia employees have until Monday afternoon to submit a competing bid to purchase the airline.
02The current deal involves a $45 million capital injection, with the Nakash brothers retaining a 3% stake.
03The purchasing group led by Yariv Lerner, Kidan Dahari, Yaron Adib, and Einav Adib-Berrer will inject $30 million.
04Arkia employees currently hold a 22.14% stake in the airline and fear share dilution and potential layoffs.
05Arkia faces significant financial losses, estimated between $30 million and $60 million for the year.
06The Transport Workers Union declared a labor dispute over workforce reductions and route cancellations.

The existing deal involves a $45 million capital injection to address Arkia's liquidity issues and ensure its continued operations. Under this agreement, a purchasing group led by Yariv Lerner, Kidan Dahari, Yaron Adib, and Einav Adib-Berrer will inject $30 million and gain control of the airline, while the Nakash brothers will retain a 3% stake after injecting $8.5 million. The remaining funds are expected to come from the state.

Arkia is facing severe financial difficulties, with estimated losses between $30 million and $60 million this year. The employees' union, represented by Avi Edri, Chairman of the Board of Directors of the workers' corporation, fears that the new investor group will dilute their shareholding and implement layoffs. The Transport Workers Union has already declared a labor dispute over workforce reductions and route cancellations.

Summarized by baba from the reports of 5 newsrooms. Updated 21:26

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