Zim sale review in “advanced stages”, rejects CEO bid 

Maersk, MSC, Hapag-Lloyd said to be interested

The Zim Pearl is seen off the coast of Virginia. (Photo: Zim)
Gemini Sparkle

Key Takeaways:

  • Zim Integrated Shipping Services is evaluating multiple buyout proposals from strategic parties.
  • The company's board rejected an "undervalued" acquisition offer from its current CEO and an Israeli shipping magnate.
  • Zim employees have urged the board to reject any Hapag-Lloyd offer, citing security concerns due to its Qatari and Saudi investors.
See a mistake? Contact us.

Zim Integrated Shipping Services confirmed it is evaluating a number of buyout proposals but ruled out an acquisition led by its current chief executive.

The company (NYSE: ZIM) in a statement said that its board of directors is evaluating proposals from “multiple strategic parties” to acquire all the shares of the Haifa-based container carrier.

The board said it rejected as “undervalued” a revised proposal from Zim president and chief executive Eli Glickman and Israeli shipping magnate Rami Ungar.

The company did not confirm reports that Maersk (MAERSK-B.CO), its Gemini partner Hapag-Lloyd (HLAG.DE) and privately-held Mediterranean Shipping Co. were interested in acquiring Zim.

Zim, the 10th largest global liner operator with more than 705,000 twenty foot units’ (TEU) capacity, has seen its share price rise more than 3.5% in the past month.

The review is in advanced stages, and the company said it did not plan to issue updates until an agreement is reached.

Zim employees earlier urged the board to reject on security grounds any Hapag-Lloyd offer as Qatari and Saudi investors hold significant shares in the company.

In an email to FreightWaves, Hapag-Lloyd Senior Director of Communications Nils Haupt said that the company does not comment on market rumors. MSC in an email said, “MSC is not and never has been interested in bidding for Zim.” A Maersk spokesperson was not available for comment.
Zim did not immediately return messages for comment.

This article was updated Dec. 30 to add comments from Hapag-Lloyd and MSC.

Find more articles by Stuart Chirls here.

Related coverage:

Trans-Pacific ocean rates swing as New Year looms

Marad chief, FMC nominee confirmed

Philadelphia’s Theobald becomes fourth major port chief to exit this year

Port Houston November volumes dip, but exports up 8% year to date

Stuart Chirls

Stuart Chirls is a journalist who has covered the full breadth of railroads, intermodal, container shipping, ports, supply chain and logistics for Railway Age, the Journal of Commerce and IANA. He has also staffed at S&P, McGraw-Hill, United Business Media, Advance Media, Tribune Co., The New York Times Co., and worked in supply chain with BASF, the world's largest chemical producer. Reach him at stuartchirls@firecrown.com.