The Zim deal is progressing to another stage: the shareholders approved by a large majority

The shipping company Heg Lloyd is purchasing Zim together with the Fimi Foundation, which will receive the Israeli part of the operation. The transaction is carried out at a value of 4.2 billion dollars for Zim, or 35 dollars per share, while the current price of Zim shares on the New York Stock Exchange is much lower and stands at 26.4 dollars.

The reason for this probably lies in the skepticism of the investors in the ability of the purchasers to complete the purchase, against the background of the challenge involved in the “golden share” of the State of Israel, which is intended to preserve the interests of the state. The request for approval was submitted by the buyers to the Government Companies Authority, and the process has begun but is expected to be lengthy (at the time of the transaction, it was estimated that it would be completed at the end of the year). It is likely that the state officials will have questions and requests and the issue will be examined in depth, certainly against the background of the state of emergency that prevailed in Israel until recently.

The strategic process led by the board of directors maximizes the return for shareholders and resulted in a 75% improvement compared to the first proposal submitted to the board of directors

“A clear expression of confidence”

Yair Sarosi, Chairman of the Zim Board of Directors, said: “The approval of the transaction by the majority of the shareholders is a clear and unequivocal expression of confidence in the Board of Directors, in the process he managed and in the outline of the transaction with Hapag-Lloyd. The transaction was formulated following a strategic, thorough and comprehensive examination designed to maximize the value for the shareholders and promote the good of the company in a broad and long-term perspective. The Zim Board of Directors will continue to act for the benefit of all owners The interest of the company until the transaction is completed.”

Earlier this week at the Globes conference, Dr. Samer Haj Yahya, the adviser to Hagg-Lloyd and who is considered to be the architect of the deal, estimated that “the Zim deal is Zionist for the benefit of the State of Israel first rate, and it will go through.”

Let’s recall that the purchase came after the Zim board of directors, led by Yair Sarosi, initiated a process of examining strategic alternatives after veteran CEO Eli Glickman made an offer to purchase Zim, together with businessman Rami Unger – an offer that was rejected. Glickman himself recently sold Zim shares and then announced his retirement from the position after a six-month transition period. The CFO also made a similar announcement.