Borovitz Family Seeks To Maintain Control Of El Al

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Tami Mozes-Borovitz, who is currently the controlling shareholder of El Al through her family’s company Knafaim Holdings Ltd, is seeking to maintain control of the company by having a group of foreign investors each buy up to 5% of the airline’s shares, Globes reported. This plan would allow the investors to purchase the shares without the need for a permit from Israel’s Government Corporations Authority.

According to the report, an El Al representative contacted Government Corporations Authority head Yaakov Kvint in the last several days and requested government approval for foreign investors to acquire over 24% of El Al.

The letter asserted that El Al is not asking for control of the airline to be ceded to foreign investors but that each investor would only acquire up to 5% of the company’s shares, up to a total of 49%.

Currently, any investors purchasing 5% or more of El Al shares must receive a government permit.

Businessman Meir Gurvitz has offered to share control of El Al with Knafaim Holdings, which currently owns a 38.3% stake in El Al.

Eli Rozenberg, who wants to become the majority shareholder of El Al, has submitted a bid of $101 million for a 45% share of the company.

(YWN Israel Desk – Jerusalem)