New outline agreed: El Al will receive 210 m from the state – the capital market

The Ministry of Finance and El Al announce an alternative outline agreement for a loan following the state, under which the state will transfer $ 210 million to El as an advance payment for the supply of flight tickets for the manpower in the aviation security system. El Al, for its part, will undertake to implement an efficiency plan that is a condition for establishing the outline. In addition, the Company will undertake an IPO in the amount of $ 105 million, with the Company’s owners undertaking to purchase shares in the amount of $ 43 million.

Last month, the company raised about NIS 250 million in options, about $ 77 million, with $ 50 million coming in from controlling shareholder Eli Rosenberg and only about $ 27 million from the public. Although the company tried to present the offering as a success, many entities criticized the pricing of the offering and defined it as a failure.

There is one reason for the existence of society, that “the state will not let it fall.” But this is a company that lost even when it had to make a profit. It is not the Corona that has overthrown El Al, it has fallen long before, and despite this it is receiving grants and guarantees of hundreds of millions of dollars. So maybe now something has changed – a new landlord who despite his lack of experience in the aviation market, brought in money and at the same time a reorganization plan. So there is a future, though it really is not bright.