February 01, 2023
Kenny Rozenberg increases El Al stake
The US businessman has converted warrants to shares and issued an offer to purchase for an additional 5% of the airline.
US businessman and El Al Israel Airlines Ltd. (TASE:ELAL) controlling shareholder Kenny Rozenberg has increased his stake in the airline from 39% to 45%, by converting warrants to shares.
At the same time Rozenberg has issued an offer to purchase for an additional 5% of El Al’s shares, for up to NIS 36 million, through Kanfei Nesharim at a price of NIS 3.80 per share, similar to the market price. This would bring his total holding in the company to 50%.
Rozenberg became El Al’s controlling shareholder in 2020 after investing NIS 360 million as part of a TASE offering conducted to save the airline from collapsing during the Covid pandemic. Subsequently Rozenberg injected a further NIS 166 million into El Al for additional shares and extended the $70 million owner’s loan. To date, Rozenberg has lost hundreds of millions of shekels on the investment. However, with the world’s airline industry returning to pre-Covid levels, El Al reported a $67 million net profit in the third quarter of 2022 on $626 million revenue.
Rozenberg is the founder and CEO of Centers Health Care, which he established in 1996 and has 40,000 employees including 49 nursing homes, rehabilitation and medical treatment centers, mostly in New York and northeast US, including a fleet of ambulances and home services for medical emergencies.
As seen in Globes English