Knafaim-Arkia Holdings contacted the Government Companies Authority (GCA) through El Al Israel Airlines with a request to increase its stake in El Al to over 40%.
Knafaim had already been authorized by the GCA to increase its holdings in El Al to 25%.
Knafaim-Arkia CEO Israel (Izzy) Borovich said that after obtaining the approval of the Antitrust Authority director general Mr. Strum, for increasing its stake, approval from the GCA would be the final stage before December 2004. Borovich added that Knafaim-Arkia could exercise its El Al options in December.
Borovich and Knafaim's announcement was expected following Antitrust Commissioner Dror Strum's August 8 approval for the aviation group to acquire EL AL..
Once under Knafaim's control, Borovich intends to focus El Al's activity on its growing airline business, tourism, and airplane leasing operations, in which Knafaim is active internationally.
After Knafaim-Arkia completes its acquisition of control in El Al in early 2005, Borovich is expected to be appointed as El Al chairman.
El Al completed the first quarter of 2004 with a $4.5 million net profit, its first net profit in the first quarter since 1999, compared to $35.5m. loss in the same quarter of 2003.
