The airline says it abandoned the plan because of the short timeline set by Isracard for any deal.
El Al Israel Airlines Ltd (level:Ellal) has withdrawn its bid to buy control of credit card company Isracard (TASE: ISCD). Two weeks ago, the airline made a bid to buy a controlling stake in the credit card company at a company valuation of NIS 3.1 billion. El Al said that “due to the short timeline set by Isracard (with no possibility of extension) and the extensive due diligence process required,” it believes “the company is unable to complete all required checks” and is therefore withdrawing its offer.
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Elal added in the same announcement: “It will continue to study business opportunities that are consistent with its strategic plan to expand the portfolio of products and services for its clients, among others in the field of credit and finance.”
El Al’s attempt to take control of the credit card company Isracard came after a strong year in its business. The airline, controlled by Kenny Rosenberg and led by CEO Dina Ben Tal Ganasia, has been generating cash at a rapid pace and posted record profits in the first two quarters of 2024. However, despite the profits, it has been prohibited from paying dividends due to its commitment to the state which It took place in 2020-2021, when the company was on the verge of collapse due to the Covid pandemic.
Published by Globes, Israel Business News – en.globes.co.il – on October 30, 2024.
© Copyright Globes Publisher Itonut (1983) Ltd., 2024.
Dina Ben Tal Janansia Credit: Jay Koshy and Yariv Fein
Hesi Sternlicht and Aidan Eritz