Israel Corp. (TASE:ILCO) today completed the acquisition of the state's holding in Zim Israel Navigation Co., and now owns 97.5% of the company. Israel Corp. today paid the state NIS 504 million for its 48.9% stake in Zim, which was valued at NIS 1.04 billion for the deal.
"Globe" reported this week that Antitrust Authority director general Dror Strum approved the deal unconditionally. Israel Corp. is controlled by Ofer Brothers.
Until now, Israel Corp. owned 48.9% of Zim, and private shareholders owned 2.5%. Israel Corp. plans to buy these shares at the same value as it acquired the state's holding.
Strum placed no obstacles to the deal, apparently because most of Zim's business in international, and because the company has many competitors in Israel. Ofer Brothers also owns Ofer Brothers Shipping
Now that the deal has been approved and completed, Israel Corp. will submit two significant measures to Zim's management. The first is to split Zim into two companies: one responsible for Zim's international business, 90% of all activities; and the other responsible for its Israeli business, 10% of all activities. The second measure is to hold an IPO for Zim on the Tel Aviv Stock Exchange (TASE) or an overseas stock exchange.
Published by Globes [online] - www.globes.co.il - on February 5, 2004