The Israeli container shipping company Zim Integrated Shipping Services has become the target of a purchase proposal from its chief executive, Eli Glickman, together with entrepreneur Rami Ungar. The Board of Directors has confirmed the approach, stressing that the offer is still preliminary and non-binding. It added that it has appointed financial and legal advisers to evaluate the proposal and, more broadly, to launch a review of potential strategic options, including a sale. For now, the Board notes that there is no guarantee the transaction will go ahead.
The news comes from a statement by the Board published in the investor section of Zim’s website. The joint offer by Glickman and Ungar to acquire all ordinary shares is not the only expression of interest. The Board reports that it has also received approaches from other shipping operators — with Maersk mentioned in the press — as well as from financial investors. Any decision, however, will be taken after the advisers’ review. The appointed advisers are Evercore as financial adviser, Meitar Law Offices as Israeli legal counsel, and Skadden, Arps, Slate, Meagher & Flom LLP as international legal counsel. The Board has also announced the appointment of two new independent directors with extensive financial and cross-border experience, Yair Avidan and Yoram Turbowicz, as part of this review process.
Independent analysts quoted by international media estimate that the offer could be around 25 dollars per share, valuing the company at roughly 2.4 billion dollars against a market capitalisation of about 1.9 billion dollars. Following news of the bid, Zim’s share price rose by up to 15% within hours. According to Calcalistech, Zim has around 2.8 billion dollars in cash against 5.7 billion in liabilities, including 1.23 billion in short-term debt.
Zim’s controlling shareholder is Kenon Holdings, owned by the Ofer family. Rami Ungar is an Israeli entrepreneur active in shipping and vehicle imports who could merge Zim with his company Ray Shipping, while Eli Glickman is the group’s CEO and president. Concerns have been raised about a potential conflict of interest between Glickman’s role as an executive and his position as a bidder, particularly if competing offers were to materialise.
The matter also involves the State of Israel, which holds a golden share in Zim requiring an Israeli majority on the Board, obliging the CEO and president to be Israeli citizens and ensuring at least eleven vessels are kept available to the state in case of emergency. These constraints complicate any acquisition by a foreign investor, although they would not necessarily be insurmountable for a major global operator.
Pietro Rossoni
