The largest insider deal in the history of the Tel Aviv Stock Exchange (TASE) can now get underway. At a general shareholders meeting today, Israel Corp. (TASE:ILCO) shareholders approved a deal, under which Zim Israel Navigation Co. will purchase and lease 12 ships for $820 million from Sammy Ofer's Zodiac Maritime Agencies Ltd. Zim is subsidiary of Israel Corp, which is a subsidiary of Ofer Brothers, controlled by Sammy Ofer and his son Idan, who jointly own 50.6% of the company.
Representatives of Israel Corp. and Bank Leumi (TASE:LUMI), which owns 20% of Israel Corp., could not vote. The Israel Securities Authority barred Bank Leumi from voting on the deal, because it is a major lender to Israel Corp.
94% of the shareholders present at the meeting voted in favor of the deal, amounting to 76% of the shareholders without a personal interest in it.
Under the deal, Ofer Brothers will buy four ships; four more ships will be jointly owned by Zim and Ofer Brothers; and Zim will lease four additional ships for ten years.
Israel Corp. today said this was an important day in Zim's history, because the procurement plan would enable the company to realize its strategic plan and increase its revenue and profits.
In recent days, Israel Corp. and Ofer Brothers cautioned that if the procurement plan was not implemented, Zim would have to buy or lease ships on the international market at much higher prices, because of the current conditions in the shipping industry.
Published by Globes [online], Israel business news - www.globes.co.il - on December 9, 2004