Business brief
Capital Moves and Corporate Shifts Reshape Israel's Enterprise Landscape
Shashua seeks buyers for digital lender One Zero, El Al cashes in on airport dominance, and private syndications seal a massive Sorek power deal.
Business
El Al capitalized on foreign carrier flight cancellations to post record $1.27B revenue — converting airport dominance into a $116M shareholder payout.
BackgroundForeign airlines suspended flight operations to Israel for extended periods during wartime flare-ups, allowing El Al to capture elevated passenger volumes and record airfare yields. The airline reinstated shareholder dividends earlier in 2026 following complete state bailout repayments.
- Net income fell 14% to $172.2 million after El Al recorded a $13.4 million write-down on its stake in credit card issuer ICC-CAL following a failed divestment.
- Forward ticket bookings reached a historic $1.1 billion backlog, lifting gross liquid reserves to $2.03 billion against $1.12 billion in financial debt.
- Management declared a ₪116 million dividend payable November 19, demonstrating solid cash-generation durability despite rising aviation fuel volatility.
Business
Edeltech and Menora closed ₪5.6B in private syndication for Sorek — pushing Israel's power generation grid further into institutional hands.
BackgroundIsrael's Electricity Authority has systematically privatized state generation assets formerly managed exclusively by the Israel Electric Corporation. Combined-cycle gas generation stations provide baseline electricity balancing expanding domestic solar photovoltaic production.
- The debt syndication is led jointly by Mizrahi Tefahot Bank and Israel Discount Bank, financing the build-operate-transfer concession through commercial completion.
- The Sorek plant has secured dedicated long-term natural gas supply contracts from the offshore Karish gas field operated by Energean.
- Scheduled for commercial synchronization in 2029, the facility will supply low-emission power directly into central Israel's high-demand grid.
- The deal expands institutional pension fund holdings in sovereign energy infrastructure, providing Menora with stable multi-decade yield streams.
Business
Amnon Shashua is seeking an exit from his digital banking venture — testing institutional appetite for Israel's premier fintech challenger.
BackgroundOne Zero received Israel's first new banking charter in over 40 years, aiming to disrupt the domestic banking oligopoly through an automated, AI-driven mobile retail banking platform. Shashua provided the primary equity capital to launch the venture, absorbing significant startup development costs.
- Investment bank EY Capital Markets is managing data room access for prospective institutional bidders, including investment house Meitav and businessman Moti Ben-Moshe.
- The proposed transaction structure pairs secondary share purchases from Shashua with primary equity injections to satisfy Bank of Israel capital buffer rules.
- One Zero trimmed its first-half 2026 net loss by 27% to ₪84 million, forecasting full monthly breakeven ahead of projected annual profitability in 2027.
Business
Rafael's German manufacturing subsidiary landed an €84.5M Finnish missile deal — unlocking European Union defense subsidies through local production.
BackgroundDynamit Nobel Defence is Rafael's wholly owned German manufacturing subsidiary, producing infantry shoulder-launched bunker-buster and anti-armor weapons. Maintaining German manufacturing sites allows Rafael to participate in European Union SAFE defense funding programs that mandate EU-based production.
- The agreement includes weapon deliveries beginning in 2027 alongside live-fire training simulators, replacing Finland's legacy 1980s French-made APILAS systems.
- The deal expands Rafael's footprint in Finland following Helsinki's €317 million purchase of the David's Sling air defense system in late 2023.
- Utilizing German production pipelines enables Rafael to bypass geopolitical export scrutiny while complying with European joint defense procurement quotas.
Business
Unlock the full brief
Sign in to read every signal, takeaway, and source. Free account — Apple, Google, or email.
