Israeli El Al mulls acquisition of air carrier Montenegro Airlines.

By bne IntelliNews December 14, 2009
Israeli air carrier El Al is interested in acquisition of its local peer, Montenegro Airlines, Vijesti daily writes. The media claims that the investor has submitted an offer of intent. The potential investor intends to buy, in partnership with EBRD, a 30% stake in Montenegro Airlines. However, the state should include a clause allowing the buyer to increase its stake in the national flag carrier to over 50% in 3 years, following the initial deal. Moreover, the Israeli company looks to acquire majority control in airport operator Aerodrom Crne Gore (ACG). It requests 10-year concession on the local airports in Podgorica and Tivat, as well as the exclusive right to acquire any further airport, which the authorities decide to build/open. In addition, the Israeli company requests from the government to provide state guarantees for the purchase of new airplanes by the local air company.

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