El Al Israel Airlines Ltd. (TASE:ELAL) has notified the Tel Aviv Stock Exchange (TASE) that it has signed a non-binding memorandum of understanding (MoU) with travel and tourism services provider ISSTA (TASE: ISTA) to set up a joint venture.
Under the terms of the MoU, ISSTA will buy a 4.9% stake of El Al within 60 days at NIS 7.20 per share. The joint venture will be owned by ISSTA (40%), El Al (40%) and El Al controlling shareholders Kenny Rozenberg (20%). El Al and ISSTA plan to complete negotiations and sign a binding agreement within 90 days.
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The agreement will provide El Al with a major stream of passengers through ISSTA’s expertise in selling vacation packages.
El Al’s share price is up 1.38% today at NIS 3.88 and ISSTA’s share price is down 0.98% at NIS 74.
Published by Globes, Israel business news – en.globes.co.il – on April 30, 2023.
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