The ELAL buyout has taken place, according to a report by the Globes, with the new owner being Eli Rosenberg, the son of Monsey businessman Kenny Rosenberg.
Following the deal struck with the Israeli governemnt, the airline also put its’ shares up on the public market today. Meir Gurvitz and David Sapir, who were said to be interested in buying the airline, did not bid for the shares.
The share of the previous controlling Borowitz family has been diluted and they will no longer be a majority owner.
Eli Rozenberg is the 26 year old Israeli son of Kenny Rozenberg, US owner of the Centers Heath Care nursing home chain.
The price paid, said to be about $100 million for roughly 43% of the airline, is inexpensive for an airline according to the Globes, but El Al is a real fixer-upper right now. The state of Israel will hold about 12-15% of the airline and will try to unload their shares within the next couple years.
El Al’s powerful labor unions have saddled the airline with ultra-expensive labor contracts, the company owes hundreds of millions of dollars in refunds for cancelled flights, flight operations have been closed since March, it faces more competition then ever, and its reputation is in the gutter.