Full coverage· Economy· Updated 12:33

Arkia Employees Seek New Investor to Block Sale Deal

Arkia airline employees have been given until Monday afternoon to submit a competing bid to purchase the airline, following a deal signed by the controlling Nakash brothers to sell their majority stake to an investor group. The employees' union, which currently holds a 22% stake in the company, is racing to find alternative investors to match the existing offer and protect their ownership and employment terms.

3 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 present a competing purchase offer to block the current sale of the airline.
02The current deal involves a $45 million capital injection, with the Nakash brothers retaining a 3% stake in the company.
03An investor group led by Kidyan Dahari and Yaron Adib has agreed to inject $30 million to acquire majority control.
04The employees' union, which holds a 22% stake, is negotiating with potential investors to match the current bid.
05Arkia is facing severe financial distress, with projected losses for the year estimated between $30 million and $60 million.
06The Transport Workers Union declared a labor dispute over planned workforce reductions and route cancellations without consultation.

The current deal involves a $45 million capital injection into the financially struggling airline. Under this agreement, the purchasing group, led by Kidyan Dahari, Yaron Adib, Yariv Lerner, and Einav Adib-Berrer, will inject $30 million to gain control of the company. The Nakash brothers will inject $8.5 million and retain a 3% stake, with the remaining funds coming from the state.

Arkia is facing severe financial difficulties, with estimated losses of $30 million in the first three quarters of the year and projected annual losses between $30 million and $60 million. The employees' efforts to block the sale follow protests and a labor dispute declared by the Transport Workers Union over planned workforce reductions, route cancellations, and the dilution of employee shares.

Summarized by baba from the reports of 3 newsrooms. Updated 18:37

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