Israeli leisure carrier Israir’s trustee has disclosed that the sale of the airline to new owners BGI Investments has been completed, after a long competitive bidding process.

The trustee has informed a Tel Aviv court that, following approval of the BGI bid on 1 January, the sale was completed on 21 January.

According to the court submission 51% of Israir’s capital has been transferred from Israir parent IDB to BGI Investments, and another 24% has been moved to entity Rami Levy Hashikma Marketing. Rami Levy is a supermarket retail entrepreneur who jointly owns BGI Investments.

A sum of 121.5 million shekels ($37 million) and the remaining 25% of Israir’s capital have been transferred to the trustee’s management. The acquisition agreement includes a put option.

The trustee says the sale process has been “intensive and complex”, lasting several months, with detailed negotiations with various bidders – including Dor Alon Energy which complicated the procedure with appeals over bidding decisions.

“Throughout the process [we] examined various models of the transaction in order to bring about an optimal result,” the trustee adds.

Israir Airbus-c-Israir

Source: Israir

Its court disclosure has revealed Israir’s financial performance for the first nine months of 2020, showing Israir was running an EBITDA loss of 4.78 million shekels, against a full-year EBITDA profit of 27.9 million shekels for 2019.

While the airline turned in full-year revenues of 270 million shekels for 2019, this figure had amounted to just 83 million shekels by 30 September last year.