Israeli shipping company ZIM Integrated Shipping Services (NYSE: ZIM) attracted interest at the end of last week, posting a rise of almost 5% in its stock price, after investment website Street Insider cited a source saying that the company’s CEO Eli Glickman was considering a management-led buyout. No price was mentioned.
The report follows the notification in December by Kenon Holdings, controlled by Idan Ofer, that it had sold its remaining shares in ZIM, leaving the company without a dominant shareholder.
ZIM’s share price has fallen 11% so far this year, giving it a current market cap of $2.5 billion. Last year, the stock was quite volatile, falling as shipping prices declined, and then rising again, among other things because of renewed threats by the Houthi rebels in Yemen to shipping in the Red Sea, leading to longer shipping routes and hence to lower availability of ships, which enabled ZIM to raise prices once more.
ZIM became listed on the New York Stock Exchange after undergoing two large debt settlements. In 2009, it rescheduled debt of $7 billion, and in 2014 it carried out a 50% haircut on debt of $3.4 billion. The flotation was carried out at a pre-money valuation of $1.5 billion. After a period in which it drifted, the stock benefitted from a following wind in the shape of rising shipping prices, and the company’s market cap shot up to a peak of $10 billion in 2022.
Investing.com quotes Jefferies analyst Omar Nokta as saying that investors might oppose such a deal at the current stock price, and that the change-of-control rules in Israel could make the transaction challenging.
ZIM stated in response that "The company does not respond to market speculation."
Published by Globes, Israel business news - en.globes.co.il - on March 9, 2025.
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