Clal Insurance purchased half of its holdings in El Al from the state

Clal Insurance purchased half of its holdings in El Al from the state and received an option to purchase the rest of the state's holdings in the airline. Yesterday the state sold 12.2 million shares of El Al which are 4.9% of the company's capital at a price of 4.9 shekels per share and a total consideration of 60 million shekels. The transaction price is 5% lower than the closing price of the El Al share yesterday.
Following the deal, the state's holdings in El Al dropped to 4.9% of the company's capital. Clal Insurance (+2.92% 5894), whose investments are managed by Barak Bansky, received from the state an option to purchase the rest of its holdings in El Al, 4.9%, at a price 4% higher than what it paid yesterday for the shares. In this way, the state realizes a profit on an investment it made in El Al's shares in September 2020, and takes advantage of a 99% increase in El Al's shares (-3.14% 503.2) from the beginning of 2023 against the background of the tide in the aviation and tourism market and the efficiency processes carried out in the company during the Corona period.
The state purchased 14.3% of El Al's shares in September 2020 as part of the IPO in which Eli Rosenberg, through his father Kenny Rosenberg, acquired control of El Al. The state then purchased 174 million shares, which were 14.4% of El Al's shares, at a price of 67 shekels per share, for a total consideration of NIS 117 million. The state sold 1.7% of El Al's shares in April 2023 at a price of 4.20 shekels per share, for a total consideration of 13 million shekels, as part of a partial purchase offer carried out by Kanafi Nesherim, the controlling shareholder of El Al, which is owned by Kenny and Eli Rosenberg.
Clal Insurance's investment in El Al probably stems from an assessment that in the foreseeable future, there will continue to be an excess of demand in the aviation market, which increases the likelihood of high occupancy and high prices, as well as against the background of the airlines' streamlining, which improved their profitability. The investment in El Al follows the investment made by Clal Insurance two weeks ago, in which it purchased 5% of Israir's shares for NIS 20 million, and received exercise options for 4.3% of Israir's shares (-7.3% 184) in full dilution for an additional amount of NIS 23 million.