Arkia Airlines Ltd. is seeking to list on the Tel Aviv Stock Exchange (TASE) by merging with a company that has no activities.
Canzon (TASE: CNZN) chairman Shai Zohar and CEO Avishai Fishman have notified the TASE that they are promoting a complex move in which Arkia will merge with a stock market shell, but not with Canzon. The merger will take place at a valuation of NIS 100 million for Arkia.
RELATED ARTICLES
El Al, Israir, Arkia plan daily Morocco flights
Canzon has signed a memorandum of principles on the matter with the airline’s parents company Arkia Holdings, which is controlled by the Nakash brothers with a 70% stake. The other 30% is owned by Arkia’s employees. According to the memorandum of principles, Canzon will strive to merge Arkia into a publicly traded company with no commitments and debts and NIS 10 million of available cash.
When any such deal is completed, Arkia’s current shareholders will receive 82.64% of the new merged company, while the remaining 17.36% will be divided between the shareholders of Canzon who will bring value to the deal. After the completion of the deal, the Nakash brothers will have 57.85% of the shares in the merged company and Arkia’s employees will have 24.79%.
Arkia chairman and CEO Gadi Tepper said that within 30 days the employees will have to decide if they want to be part of the offering. Arkia Workers Council chairman Yaron Zelika said, “Everything depends on the approval of the workers council. We will study the plan and make a decision.”
Arkia has 530 employees of whom only 60 are actually working with the rest on unpaid leave because of the Covid-19 pandemic.
Published by Globes, Israel business news – en.globes.co.il – on January 13, 2021
© Copyright of Globes Publisher Itonut (1983) Ltd. 2021