Israel Corp. spinoff would include its stake in ZIM

Kenon would own five ventures, including 32 percent of ZIM, and be listed on the Tel Aviv and New York stock exchanges.    The conglomerate Israel Corp. is proposing to spin off several of its holdings, including its 32-percent stake in the container shipping company ZIM, into a separate company called Kenon Holdings. Israel Corp. would retain its chemical and oil businesses.
   Kenon would be incorporated in Singapore and be listed on both the Tel Aviv Stock Exchange and New York Stock Exchange.
   In addition to ZIM, Kenon’s other holdings would be:

• IC Power, an electric power company with assets in Israel and Latin America.
• A 50-percent stake in Qoros, a Chinese automotible manufacturer.
• IC Green Energy, a company that invests in renewable energy project in the solar power and biofuels sectors.
• Tower Semiconductor.

   Israel Corp. said the goal is “to create value for the company and all of its shareholders in the long term.”
   The plan needs to be approved by shareholders, and Israel Corp. said it will prepare a separation agreement in which “certain right and obligations regarding the transferred companies” will be detailed.
   When ZIM went through a restructuring earlier this year in which the majority stake in the company was given to various financial institutions and shipowners, control of a fleet of ships for use in a national emergency was a key consideration.
   In an article that appears in this month’s issue of American Shipper, ZIM’s chief executive officer Rafi Danieli said the company has 15 owned ships, and 11 of those have Israeli crews, as required by the Israeli government to ensure the country has a fleet that can provide a lifeline in the event of a war or other crisis. About 15 percent of ZIM’s activity is related to Israeli trade.
   ZIM was established in 1945, and its early fleet included ships that were refitted to carry immigrants from Europe and much needed supplies during Israel’s founding War of Independence and during the late 1940s. In 1969, about half of ZIM was acquired by Israel Corp., which was later privatized.
   The company’s close association with Israel has made it a protest target for groups that oppose Israel’s policies in Palestine. Last month, demonstrators prevented a ZIM ship from loading and discharging cargo in Oakland and further demonstrations are planned for later this month.