Second businessman enters race to buy El Al

Real estate tycoon Meir Gurvitz has filed a request with the secretariat of El Al Israel Airlines (LY, Tel Aviv Ben Gurion) to acquire a controlling stake in the debt-encumbered privately-owned carrier, joining Eli Rosenberg, the 30-year-old son of a New York-based businessman, in the race to buy it. The request to acquire between 25% and 40% of the carrier’s shares has been passed on to the Government Companies Authority, the Globes and Haaretz newspapers reported. An Israeli-born businessman who spent much of his life in the UK but more recently in the US, Gurvitz, 65, has property interests in a number of countries. The vehicle for his speculations is Tel Aviv-based Arazim Investments Ltd., a public company whose finances were hit hard by the 2008 financial crisis when its debts mounted to around ILS1 billion shekels (USD294 million). But this figure has been cut back to ILS180 million (USD53 million) without any need of a write down, according to Globes. “This is some indication of his financial capabilities,” an unnamed source close to Gurvitz said. “His Israeli activities are only a small and public part of his activities, the rest are spread over Europe and the US.” Asked why he would make such a diversification to buy El Al, the source said: “Gurvitz believes that the collective agreements that have been signed with the employees make El Al interesting. It is clear to him that the company won’t bring him profitability in the coming years while he is repaying the loan.” The source added that Gurvitz would also buy shares in El Al when the forthcoming USD150 million share issue is staged at the end of the month. Gurvitz is not a complete novice to aviation. He holds a pilot’s licence and flew a private jet that Arazim once owned. He leads a reclusive life, refusing to give media interviews, and is said to be close to Haredi Judaism, an Orthodox community characterised by a strict adherence to tradition. In related news, as Israel plans for a resumption of international services, the country’s Health Ministry released on August 16 a list of 20 “green” countries from which citizens and foreign workers – the country remains closed to tourists for now – will be exempt from a 14-day coronavirus quarantine period. Countries thought to present a lower risk include Cyprus, Germany, Greece, Italy, Jordan, and the United Kingdom, as well as Canada, Hong Kong, New Zealand, and Rwanda, Agence France-Presse reported. The United States is on a list of “red” countries.