IDB Development bondholders have chosen Rami Levy's offer for Israir (6H, Tel Aviv Ben Gurion) as their preferred bid for the Israeli carrier.
The discount-supermarket mogul's offer will see his jointly-owned BGI Investments vehicle pay ILS162 million shekels (USD50.4 million) for a 51% stake in Israir. The remaining 49% will be split between Levy himself with 24% and IDB's bondholders with 25%, which will be converted into BGI shares at a later stage. Levy also pledged to keep Israir's senior management in place including Chief Execeutive Officer Uri Sirkis.
Israel's Globes newspaper said the offer received initial backing earlier this month from the trustee overseeing the sale of Israir on behalf of bondholders for IDB Development Corp., a holding company that was declared insolvent in September and ordered liquidated.
Other bids submitted included one from Yigal Dimri, who offered to buy 83% of Israir shares for ILS140.4 million (USD43.6 million) with promises to hold an IPO within 18 months. His offer also included strategic cooperation with a retail chain that would buy a 25% stake in Israir. The third bid was from Moti Ben-Moshe, through Dor Alon, who offered ILS130 million (USD40.4 million) for all of Israir's shares. Dor Alon would then be allocated a 2.4% stake, with a put option to realise the shares on three potential dates.
Moti Ben-Moshe, an Israeli businessman based in the United Arab Emirates, had earlier warned he would appeal to the Israeli Supreme Court if Dimri's offer was accepted, given it was submitted after the deadline.
As it stands, Levy's offer must still be ratified by a court during a hearing set for Sunday, January 3, 2021.
