Israir Airlines is expected to merge with Sun d’Or in exchange for $24 million and a 25% stake in El Al’s charter subsidiary. The deal, which was signed on Sunday, still needs to be approved by Israel Antitrust Authority Director-General Michal Halperin.
Archive Photo Credit: Moshe Shai/Flash 90
After many months of negotiations, El Al’s charter subsidiary Sun d’Or announced on Sunday that it has signed a deal to purchase Israir Airlines. However, the acquisition deal is still pending the approval of Israel Antitrust Authority Director-General Michal Halperin.
As part of the deal, IDB Development Tourism, which fully owns the airline, will sell all of its shares to Sun d’Or for $24 million in cash and a 25% stake in the El Al charter subsidiary. Also, Israir Airlines is expected to sell the planes it owns. The sale of the airplanes is expected to be worth some $70 million and will be used to repay Bank Leumi a $35 million loan.