El Al Has Until Sept. 10 to Offer Shares to Win State Bailout

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El Al Israel Airlines Ltd., crippled by the coronavirus pandemic, must offer shares by Sept. 10 if it wants to receive state aid.

Israel’s flagship carrier should aim to raise a minimum of 505 million shekels ($150 million) at 0.671 shekel a share, with bids submitted no later than Sept. 15, the Finance Ministry said Sunday in a letter outlining its proposed rescue package. After the offering is completed, the government will guarantee a bank loan of $250 million, it said.

El Al said it was studying the proposal, which must be approved by the cabinet.

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The government plans to buy shares worth 264.2 million shekels in the offering and will sell or transfer them within 24 months, it said.

The flagship carrier suspended most passenger plane operations months ago due to the coronavirus pandemic. It said in late August that it would extend the suspension until the end of September. Israel has extended its ban on incoming tourism until October as it struggles to contain a second wave of infections far more serious than the first.

The ministry originally set an Aug. 30 deadline for the share offer. After it passed, Transportation Minister Miri Regev told El Al it would either have to issue a share offering within days, allow interested parties to buy the airline, or put it into receivership, according to a report last week in the Globes newspaper.

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