Israir ponders last-minute Swiss-Australian bid

Just as a final decision was about to be made on the sale of Israir (6H, Tel Aviv Ben Gurion), Geneva-based investment bank and Islamic finance specialist Wadiah Capital and Amrock Aviation, a little-known firm based in Queensland, Australia, made a last-minute joint (51%/49% respectively) offer, the highest so far, Globes reported. The Wadiah-Amrock bid is for ILS170 million shekels (USD51.9 million) in cash plus, as most of the other bids, a waiver of IDB Development’s USD5 million debt to the airline. It also includes an ILS7 million (USD2.1 million) bonus for the airline’s employees if the deal closes and a guarantee of further investment. A managing partner at Wadiah Capital is Shlomo Ovadiah, owner of London-based wealth management and financial services firm Ovadiah Financial. However, IDB Development lawyer Ophir Naor said that he had received several inquiries about the new offer and the identity of the individuals behind the companies. Before the Swiss-Australian offer was presented, IDB Development bondholders discussed the bids at a Zoom meeting last week. Despite several offers having been raised in recent weeks, the bond trustee issued a recommendation to accept the bid from Rami Levy’s BGI Investments. The latter’s already-improved offer of ILS75 million (USD22.9 million) in cash for 80% of Israir and ILS26 million (USD7.9 million) later for the remaining 20%, has, according to Globes, been upgraded by a further ILS10 million (USD3 million). Representatives of Global Knafaim Leasing joined the Zoom discussion and tried to persuade the bondholders of the superiority of their bid, which, as previously reported, combines a cash payment with shares and a pledge to enhance Israir’s fleet with the lessor’s aircraft. On December 6, news emerged that Knafaim had once again raised its offer. It would pay ILS40 million (USD12.2 million) in cash; ILS50 million (USD15.3 million) in 4.5% interest-bearing bonds reaching maturity in December 2025 whose value according to the company is ILS117.9 million (USD36 million); plus the same waiver of IDB debt. Some bondholders expressed doubt as to whether it was right to sell Israir at all, as it is currently in a positive momentum under the leadership of chief executive Uri Sirkis, who the bondholders agreed should remain in his position after it is sold.