By Rami Ayyub TEL AVIV, Oct 2 (Reuters) - Israel's privatis
By Rami Ayyub
TEL AVIV, Oct 2 (Reuters) – Israel’s privatisation physique on Friday granted management of El Al Airways ELAL.TA to spiritual scholar Eli Rozenberg, placing religion within the 27-year-old’s plan to show across the cash-strapped flag service.
Rozenberg’s buy of a controlling stake is opposed by the board of El Al, which alleges he’s a frontman for his non-Israeli father.
Rozenberg’s newly created Kanfei Nesharim Aviation purchased $107 million price of shares in an providing final month that gave him a virtually 43% stake in Israel’s cash-strapped flag service.
Kanfei Nesharim obtained a management allow for the airline from the Authorities Firms Authority on Friday, signed by senior authorities ministers, together with defence minister Benny Gantz and finance minister Israel Katz, the corporate mentioned.
Reiterating previous guarantees for a board shake-up, Kanfei Nesharim mentioned it will “contact El Al instantly with the goal of changing the corporate’s board of administrators and permitting it to start managing the corporate whereas setting priorities for restoration.”
A spokesman for El Al didn’t instantly reply to a request for remark.
The airline’s board final week requested authorities ministers to rethink giving Rozenberg management, arguing that he represents the pursuits of his father Kenny Rozenberg, chief govt of New York-based nursing house chain Facilities Well being Care.
Below Israeli regulation, management of El Al should be held by an Israeli citizen. Whereas Eli Rozenberg is an Israeli citizen and resides in Israel, his father will not be.
El Al, which has reported losses for 2 years and racked up debt to resume its fleet, suspended scheduled passenger flights in March on the outset of the coronavirus outbreak when Israel closed its borders to overseas residents.
Most of its 5,940 staff stay on unpaid go away.
Israel’s authorities has supplied to again 75% of a $250 million mortgage conditional on the group slashing bills and issuing $150 million price of recent shares.
Within the providing, Israel’s authorities purchased a 15% stake for $34 million, whereas the holdings of El Al’s present homeowners, Knafaim Holdings KNFM.TA, fell to 15.2% from 38%.
(Extra reporting by Steven Scheer, modifying by Louise Heavens)
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