Israel
By Hamodia Staff
YERUSHALAYIM -
Parked El AL airplanes at the ben Gurion International Airport. (Yossi Aloni/Flash90)
There was good news from El Al Airlines on Wednesday, as the company succeeded in raising the $75 million required to secure $300 million in state-guaranteed loans crucial to its survival, Globes reported on Wednesday.
El Al chairman David Brodet said, “We were pleasantly surprised and fully achieved our target.”
The target was to raise $75 million. In the event, it raised $77 million by issuing 1.25 billion options to the public on the Tel Aviv Stock Exchange (TASE). The options given can be exercised at a price of NIS 0.30 per share, so that full exercise of the options would increase the capital raised by an additional amount of NIS 375 million ($116 million).
Cash-strapped El Al Israel Airlines raises $77 million in options sale
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El Al raises $77m in TASE options offering
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JERUSALEM (Reuters) - El Al Israel Airlines said on Tuesday it raised 250 million shekels ($77 million) in a sale of options on the Tel Aviv Stock Exchange, meeting a key condition for a state-backed loan needed to repay the flag carrier’s debts.
FILE PHOTO: An Israel El Al airlines plane is seen after its landing following its inaugural flight between Tel Aviv and Nice at Nice international airport, France, April 4, 2019. REUTERS/Eric Gaillard/File Photo
The airline said some $50 million came from controlling shareholder Eli Rozenberg, a 27-year-old student who bought the cash-strapped carrier in October, and $27 million from institutional investors.