El Al Israel Airlines Ltd (level:EllalAn Israeli company has offered to buy control of credit card company Isracard (TASE: ISCD) at a company valuation of NIS 3.1 billion. This is a similar offer to the one made last week to the credit card company by insurance and financing company Menora Mivtachim (TASE: MMHD).
El Al’s stock price rose 173% over the past year, as foreign airlines canceled flights to Israel during the war, leaving the Israeli airline with a monopoly on many routes, especially to the United States. El Al announced record profits in the second quarter of 2024.
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Control of Isracard will align with the retail activities of the frequent flyer club (jointly owned with The Phoenix), which has 3.1 million members, and 414,000 Fly Card credit card holders, which serves passengers who want to accumulate points.
El Al, led by CEO Dina Bental Janancia, today sent a letter to Isracard President Tamar Yasur and CEO Ran Oz offering to buy a 45% stake in the credit card company through a special allotment of shares. Isracard’s current market capitalization is NIS 2.8 billion, much lower than El Al’s NIS 3.1 billion valuation. El Al proposed to meet with Isracard management immediately after the holiday, “to move forward forcefully, without any delay, to reach an agreement between Isracard and El Al, for El Al’s investment in Isracard.”
Published by Globes, Israel Business News – en.globes.co.il – on October 16, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.
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