Arkia Owners Reportedly Consider Stock-Market Shell Merger

The Nakash family is considering merging Arkia into a listed shell company as an alternative route to finance the Israeli airline, according to a report published on November 7. The proposal would involve raising tens of millions of shekels from the public and putting the proceeds into Arkia. It remains an option under examination alongside efforts to sell the carrier. The reported financing discussions involve competing positions among the owners. Joe and Rafi Nakash and their representative, Avi Hormaro, oppose a possible transaction with Yariv Lerner, the Warwar family and Avi Elkayam. Avi Nakash participated in those talks, while employees support that investor proposal. A spokesperson for the brothers said, “There are currently no talks between the three brothers and the Lerner group to sell Arkia.” Employees hold 22% of Arkia through their Tut employee corporation and oppose further dilution of that holding. The report also identified businessman Shlomi Fogel as a possible participant in efforts to rehabilitate the airline, although his involvement remained tentative. These discussions concern financing and ownership proposals rather than a completed transaction. A listed-shell route was previously explored in 2022, with those negotiations ending in 2023. The latest report anticipates a shareholder funding move on Sunday, November 8. That step was still prospective when the new financing option was disclosed.