The Government Companies Authority has approached 11 of the world’s leading investment banks to submit bids for covering the privatization process for Zim Israel Navigation, jointly owned by the State of Israel and the Israel Corporation. The Authority will chose one of the banks to accompany and advise the privatization process by the end of January.
The banks are Credit Suisse First Boston, Goldman Sachs, JP Morgan, Morgan Stanley, ABN AMRO Rothschild, Salomon Smith Barney, UBS Warburg, Deutsche Bank, Arthur Anderson, CIBS, and ING Bearings.
Government Companies Authority director Yaron Jacobs said that the banks would be required to present their bids by January 10. The winning bank would be chosen three weeks later. He said that it was decided to approach banks with experience in privatization of shipping companies.
The winning bank will assist in marketing the international tender for sale of the government’s stake in the company (48.6%) and will prepare the road show. The bank will be a partner in all selection processes for those bidding for the government holding.
The privatization tender is one of the largest ever published by the State, since Zim’s value is estimated in the hundreds of millions of dollars.
At the same time, the Government Companies Authority is continuing its negotiations with the Israel Corporation on the question of whether the latter is willing to give up its first refusal rights for the State holding and whether the company is willing to participate in the tender by offering its shares for sale also.
It is known at this stage that the Israel Corporation is unwilling to either give up its first refusal rights or sell its shares. Judging by this strategy, the company wishes to take over Zim. At the same time, negotiations are continuing with the Zim workers committees.
Published by Israel's Business Arena on December 11, 2000