MSC denies interest in acquiring ZIM
Shipping group rejects reports of a bid as sale process continues. ZIM’s shares are down more than 17% so far this year, giving the company a market capitalization of approximately $2.32 billion.
Mediterranean Shipping Company (MSC) has denied reports that it is seeking to acquire ZIM, pushing back against market speculation surrounding a potential sale of the Israeli liner operator.
“We wish to deny any interest in acquiring ZIM,” an MSC spokesperson told industry website Lloyd’s List on Wednesday.
The statement follows reports that MSC and Germany’s Hapag-Lloyd had submitted bids for ZIM, and that Maersk had also expressed interest. ZIM is currently conducting a structured sale process led by investment bank Evercore.
ZIM’s shares have fallen this week and are down more than 17% so far this year, giving the company a market capitalization of approximately $2.32 billion.
The sale process was launched several months ago after a bid submitted by ZIM CEO Eli Glickman together with shipping entrepreneur Rami Ungar was rejected by the board. The board determined that the offer was lower than the company’s cash holdings and subsequently decided to solicit additional bids in an orderly process.
Until MSC’s denial, industry sources had described MSC and Hapag-Lloyd as the leading candidates. Market participants have said that Glickman and Ungar may still return with an improved proposal.
The sale has drawn opposition from ZIM’s workers’ union, which has argued that a transfer of control to foreign owners could pose a national-security risk and harm Israel’s supply chain. The union has urged the government to exercise its powers under a golden share and block any sale to foreign entities.
Transportation Minister Miri Regev has expressed sympathy with the union’s concerns and, according to sources familiar with the matter, pledged to raise the issue for cabinet discussion. The sale of ZIM was not addressed at the most recent cabinet meeting.
The uncertainty surrounding ZIM’s ownership comes as the company prepares for a general meeting next week to approve the election of a new board of directors.
Earlier this week, ZIM reached an agreement with a group of Israeli shareholders holding approximately 8% of the company’s shares, ending a proxy contest over board representation. Under the agreement, two representatives of the shareholder group, Ron Hadassi and Ran Gritzerstein, will join the board, which has been expanded to ten members.
The board will recommend that shareholders approve the full slate of candidates. Eight existing directors are guaranteed re-election, alongside the two new appointees.
The shareholder group, which includes Mor Gamel and hedge funds Sparta and Reading, had initially demanded three board appointments and called for the distribution of part of ZIM’s cash reserves as a dividend. In a statement, ZIM said that members of the group had expressed full confidence in the board, chaired by Yair Seroussi.
