The new proposal to acquire Arkia: fewer shares for employees and no flights on Shabbat

Ezra Unger, a Haredi entrepreneur from New York, submitted a new proposal to acquire Arkia: only 3% of shares for employees, cessation of flights on Shabbat, and one seat on the board. The employees have not yet responded.

Ezra Unger, a Haredi entrepreneur from New York, submitted a new proposal to acquire control of the airline Arkia, which includes leaving only 3% of the company's shares in the hands of employees, compared to 22% today. The proposal, submitted on Friday to representatives of TovT, Arkia's employees' company, includes one seat on the board and a protection package against layoffs, but conditions the deal on the cessation of flights on Shabbat. The employees, led by Avi Edri, have not yet responded to the proposal. Meanwhile, the four other buyers – Yariv Lerner, Kidan Dahari, Yaron Adiv, and Einav Adiv-Barer – have given the employees an extension until Monday to present an alternative proposal. Unger has already conducted due diligence, but about four months ago he made a more generous offer that left employees with 22%. Since then, Arkia's situation has deteriorated, and it needs an immediate capital injection. In September, it was reported that Unger claimed to New York authorities that he had no money to pay a $500,000 fine, and that his role in the deal was as a broker for other investors from the Haredi community. The proposal includes an injection of $30 million, similar to the agreement with the four other buyers.