Why did Zim’s CEO sell $40 million in shares before the $4.2 billion Hapag-Lloyd deal?
Insider sales raise questions as Eli Glickman unloads most of his stake at $28-$29 a share despite pending $35 takeover offer.
Zim CEO Eli Glickman is not waiting for the completion of the sale of the Israeli shipping company to Hapag-Lloyd and Israeli private equity fund FIMI, and neither are several other senior executives.
Four senior Zim executives sold company shares this week worth about $41.7 million, at prices ranging from $28 to $29 per share, even though Hapag-Lloyd has agreed to acquire all Zim shares for $35 per share as part of a takeover deal.
The sale was led primarily by CEO Eli Glickman, who sold about 1.4 million shares for approximately $40 million. This represents almost all of his holdings in the company, about 87% of the shares he owned.
According to Zim’s latest annual report (Form 20-F) for 2025, published earlier this month, Glickman held 1.6 million shares, representing about 1.3% of the company. Had he waited to sell those shares as part of the acquisition by Hapag-Lloyd, he would have received about $56 million. By selling most of his holdings now, he effectively gave up roughly $8.4 million in potential proceeds.
Other executives also sold shares this week: CFO Xavier Destriau sold shares worth about $1.15 million; EVP General Counsel and Company Secretary Noam Nativ sold shares worth about $361,500; Eyal Ben Amram, EVP and Chief Information Officer, sold shares worth about $173,500.
Last month, Zim signed an agreement to sell all its shares to German shipping giant Hapag-Lloyd at $35 per share, implying a total valuation of about $4.2 billion. The deal would also result in Zim being delisted from the New York Stock Exchange.
As part of the transaction, Hapag-Lloyd signed a separate agreement with the Israeli private equity fund FIMI, led by Ishay Davidi, to sell ZIM’s Israeli operations to the fund.
These operations will include about 16 owned ships (out of a total fleet of 115), the shipping lines to and from Israel, and additional operational assets.
FIMI’s inclusion in the deal is intended to overcome a major regulatory hurdle, the state’s “golden share” in Zim. This special share gives the Israeli government certain powers, including the ability to requisition the company’s fleet in times of emergency to ensure maritime supply to Israel. It also requires government approval for any sale of control.
Under the proposed structure, the golden share will remain in place in the new Israeli entity that will be owned by FIMI.
The deal still requires approval from Zim shareholders and Israeli regulators. The company has not yet submitted the transaction documents to the relevant regulator, the Government Companies Authority in the Ministry of Finance, and the full details of the agreement have not yet been made public.
The transaction has already encountered political resistance among some government officials. Critics argue that the new Zim entity that will remain in Israel could become significantly smaller and financially weaker than the current company, even though agreements with Hapag-Lloyd are expected to guarantee it a substantial revenue stream for five years.
Transportation Minister Miri Regev and the Government Companies Authority have publicly voiced opposition to the deal, although they have not yet reviewed its full details. The workers’ union at Zim also opposes the transaction.
Zim currently trades at a market capitalization of about $3.25 billion, roughly $1 billion below the value implied by Hapag-Lloyd’s offer.
The gap suggests that some investors remain skeptical that the deal will ultimately be completed. It may also indicate similar concerns among some members of the company’s management.
Zim went public on the New York Stock Exchange in January 2021 at a valuation of about $1.5 billion. At the time, Idan Ofer was its largest shareholder. He gradually sold his stake and fully exited the company by the end of 2024.
After Ofer’s departure, Glickman became the most influential figure in the company and attempted to lead a management buyout together with Rami Ungar, the Israeli importer of Kia vehicles and owner of the shipping company Ray Shipping, along with other executives.
The group submitted an offer last June, but the board of directors, chaired by Yair Seroussi. rejected it, considering the price too low. The proposal valued Zim at about $2.4 billion, or roughly $21 per share.
Following that proposal, the board launched a formal sale process, which was ultimately won by Hapag-Lloyd.
Zim said in response that the share sales by Glickman and other executives this week were carried out in accordance with all applicable securities laws.
