New York-based haredi entrepreneur Ezra Ungar is seeking to acquire control of Arkia Airlines, with a key condition for the deal: ending flights on Shabbat, Calcalist reported.
According to the report, Ungar submitted a new purchase offer on Friday to representatives of Tut, which holds a 22% stake in Arkia on behalf of its employees. The offer includes a capital injection, commitments to protect employees and a seat for their representative on the board.
However, employees would be required to relinquish most of their holdings in the company. Ungar is estimated to be offering to leave them with only about 3% of the shares, compared with their current 22%.
In exchange, Ungar is offering employees a seat on the company's board and protections against layoffs and streamlining measures.
One of the most significant provisions in the offer concerns Arkia's operations. Ungar wants the airline to stop operating flights on Shabbat, a move that could change its operating policy.
Employee representatives, led by Tut board chairman Avi Edri, have not yet announced whether they intend to accept the offer.
A decision is expected under a particularly tight deadline: the investor group that has already signed an agreement to acquire Arkia has given employees until tomorrow (Monday) to present an alternative offer on identical terms.
The group of buyers includes Yariv Lerner, Kidan Dahari, Yaron Adiv and Einav Adiv-Barer. The four have pledged to withdraw from the deal if employees can put forward a competing offer that meets the stipulated conditions.
Ungar's interest in Arkia is not new. He submitted a purchase offer about four months ago, but the airline's financial position has since deteriorated, and it needs an urgent cash injection to continue operating.
Under the agreement with the current group of buyers, the investors are to inject $30 million into Arkia. The Nakash brothers are also expected to inject $8.5 million and forgive $4.5 million in debt, while the state is to transfer an additional $7.8 million to the company.
Ungar's new offer is also based on a $30 million capital injection. According to the report, he is expected to bring in additional investors to finance the deal.