Eli Rozenberg holds 42% of El Al shares, company prepares to renew flights
The State of Israel, which had agreed to buy shares the public doesn't want, has bought shares worth about NIS 100 million, giving it a 12%-15% stake in the company.
By OMRI RONEl Al plane(photo credit: ERIC GAILLARD/REUTERS)
Eli Rozenberg’s Kanfei Nesharim company has bought a significant portion of El Al stocks, and now controls 42.85% of the company, Globes reported.This replaces the former controlling shareholder Moses Borowitz, whose shares have taken a hit during the pandemic.The State of Israel, which had agreed to buy shares the public doesn’t want, has bought shares worth about NIS 100 million, giving it a 12%-15% stake in the company.“We are proud of the results of the public offering of El Al, the national airline, which at the end of the offering saw us holding a 42.85% ownership in the company,” A company statement this evening said. “First and foremost, Kanfei Nesharim takes upon itself a great responsibility to restore the trust of passengers, and to ensure the jobs of thousands of El Al employees and lead Israel’s airline into a secure future.“Throughout recent months. Kanfei Nesharim has proven its seriousness, commitment and financial ability to help rehabilitate El Al,” the statement said.Officially, while Eli Rozenberg, a yeshiva student in his 20s, had submitted an offer to purchase the national carrier, his father Kenny Rozenberg is said to be behind the purchase. The older Rozenberg is the founder and CEO of Centers Health Care. His son Eli had made a $100 million bid for 45% of the Israeli air company, which if accepted, would give him control of the airline.El-Al also announced that it is setting up to bring back cargo flights starting on September 21 and passenger flights on October 1, Ynet reported.How many flights will occur will depend on demand. Flights will mostly be to select destinations in the US and Europe, with cargo flights going as far as East Asia. From mid-October, there will also be daily flights to Paris, London and New York.El Al has mentioned it will extend its employees’ unpaid leave until the end of October, and has announced it will begin bringing them back gradually in accordance with the demand for flights.Due to the coronavirus pandemic that nearly destroyed the tourist sector in Israel – as well as Israeli law, which compels airlines to reimburse clients for their air tickets if flights were canceled – El Al ended the second quarter of 2020 in the black after losing $140 million in the first quarter.
