EL AL and FIMI Fund Sign Agreement by which FIMI Will Invest Up to 75 Million Dollars in EL AL and Join Knafaim as the Airline’s Controlling Group
EL AL CEO Elyezer Shkedy: “The agreement signed with FIMI is an important step toward bringing the fund into the company.
“FIMI is the largest investment fund in Israel. It is a very serious company with proven abilities. Further steps to fully implement this process will require that at all levels, the airline, its people and its commercial partners commit to complex, important, responsible and bold actions.
“EL AL people are aware of the importance and of the opportunity afforded the airline by the involvement of a leading fund like FIMI.”
On Saturday night, EL AL and the FIMI Fund signed an agreement by which the fund will join EL AL’s controlling group together with Knafaim in return for investing in the airline.
FIMI is the largest private investment fund in Israel. It is a full partner in the process of enhancing the companies in which it invests. To date, the fund has invested in 68 companies, has exercised 38 options and has investments exceeding 1.7 billion dollars.
According to the agreement, FIMI will inject up to $75 million in EL AL. Up to 50 million dollars will be invested by July 2013, and FIMI can extend the date for completing the investment for two additional periods of 45 days each.
FIMI’s commitment to the agreement is provisional on a number of conditions, among them authorization by the regulatory bodies and a new signed collective agreement with EL AL personnel that is satisfactory to FIMI.