ZIM ends boardroom fight ahead of potential sale
Shareholder group settles for two directors as company seeks stability.
The Israeli shareholder group that launched a challenge to ZIM’s board of directors will gain representation through two seats on the company’s new board, under an agreement reached with the current directors. The group holds approximately 8% of ZIM’s shares.
Ron Hadassi and Ran Gritzerstein will be added to the slate of ten board candidates ahead of the general meeting scheduled for next week. The board will recommend that shareholders approve the full list of candidates.
The shareholder group, which includes Mor Gamel and hedge funds Sparta and Reading, had initially demanded the appointment of three directors affiliated with the group, with the third, Keren Bar-Hava, serving as an observer.
The agreement effectively ends the group’s proxy fight, which was led by attorney Ofir Naor and included demands that the company distribute part of its cash reserves as a dividend. In a statement, ZIM said that each member of the group expressed full confidence in the board of directors, chaired by Yair Seroussi.
The compromise highlights the board’s vulnerability, as it agreed to the demands of a relatively small shareholder group. Under the arrangement, eight existing directors are guaranteed re-election, alongside the two new representatives of the activist group. To accommodate the deal, the size of the board was increased to ten members.
ZIM is currently in the midst of a process to sell the company, with Mediterranean Shipping Company (MSC) and Germany’s Hapag-Lloyd considered the leading potential buyers.
