Hapag-Lloyd to submit revised offer for Zim to Israeli regulator
Zim says the German shipping giant intends to submit a revised proposal after the state closed its review of the original structure.
The Zim deal is heading back to the State for review under a new framework.
Zim reported to the Tel Aviv Stock Exchange on Wednesday that German shipping giant Hapag-Lloyd had informed the company of its intention to submit a revised offer to acquire Zim and seek approval for the new proposal from the Government Companies Authority and the State of Israel.
The disclosure comes a day after the Government Companies Authority informed Zim that it had concluded its review of the original structure of the proposed transaction, a development first reported by Calcalist. The Authority will no longer review the original framework. If the parties want to proceed with a revised structure, they will have to submit a new proposal for review.
According to Zim’s filing, the Authority said that if the parties want it to examine a new proposal concerning the transaction and the state’s “golden share,” they must submit the proposal in full detail. This would allow the State and the Government Companies Authority to assess the new framework and make an informed decision.
The development effectively sends the deal back to the drawing board, although Hapag-Lloyd and Israeli private equity fund FIMI have continued working on a revised structure intended to address the government’s concerns. The original transaction, valued at $4.2 billion, would see Hapag-Lloyd acquire Zim’s international business while FIMI takes ownership of a new Israeli company that would retain the Israeli operations and assume the obligations attached to the state’s golden share.
The buyers have already proposed significant changes to the structure. Their revised framework includes an additional Far East route, stronger protections for the state, commitments to maintain vessel management and professional expertise in Israel, and measures to rebuild the Israeli seafarer workforce. The buyers have said the changes could generate an additional $1.7 billion in revenue and $200 million in net profit for Zim Israel over 10 years.
The state’s golden share has been the central obstacle to the transaction. It gives the government special rights over Zim and imposes requirements related to Israeli ownership and the company’s ability to maintain critical maritime capabilities. Several government bodies have opposed the deal in its current form, citing concerns about the independence and long-term viability of the proposed Zim Israel and its dependence on Hapag-Lloyd.
