El Al Israel Airlines Ltd. (TASE:ELAL) has withdrawn its bid to buy control of credit card company Isracard (TASE: ISCD). Two weeks ago the airline made an offer to buy a controlling stake in the credit card company at a company valuation of NIS 3.1 billion. El Al said, "Due to the short time schedule set by Isracard (with no possibility of an extension) and the extensive due diligence process required," it believes that "the company is unable to complete all the required examinations", and therefore it is withdrawing its offer.
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In the same announcement, El Al added, "It will continue to examine business opportunities that are consistent with its strategic plan to expand the portfolio of products and services for its customers, among others in the field of credit and finance."
El Al's attempt to gain control of credit card company Isracard came after a strong year in its business. The airline, controlled by Kenny Rosenberg and managed by CEO Dina Ben Tal Gannacia, has been generating cash at a rapid pace and recorded record profits in the first two quarters of 2024. However, despite the profits, it is has been prevented from distributing dividends due to its commitment to the state made in 2020-2021, when the company was on the verge of collapse due to the Covid pandemic.
Published by Globes, Israel business news – en.globes.co.il – on October 30, 2024.
© Copyright of Globes Publisher Itonut (1983) Ltd., 2024.
