Israel signals it may block sale of major stake in ZIM
Regulator reminds board of state veto power tied to golden share.
Israel’s Companies Authority has intervened in the potential sale of shipping company ZIM, slightly cooling the process and signaling that the state may actively oppose certain transactions. In a formal warning to ZIM board chairman Yair Seroussi, the Authority emphasized that the state retains the right to object to the sale of more than 24% of the company’s shares.
The Companies Authority is responsible for enforcing the state’s “interests order” in such cases. In ZIM’s case, this order relates to the state’s so-called “golden share,” which imposes restrictions on the transfer of shares to foreign entities. Germany’s Hapag-Lloyd and Denmark’s Maersk have expressed interest in acquiring a stake in ZIM.
In a letter signed by Galit Widerman, senior deputy director general to Companies Authority director general Roi Kahlon, Seroussi was reminded that “in order to protect the state’s vital interests in the company, a special state share was allocated to the state.” The letter notes that any transaction resulting in a holding of 35% or more of ZIM’s issued share capital, or granting effective control over the company, requires the prior written consent of the holder of the special state share.
Widerman further wrote that any transfer resulting in a holding exceeding 24% but remaining below 35% also requires advance notification to the state. In such cases, the state is entitled to oppose the transaction if it believes the transfer could harm national security or other vital state interests.
The letter also stresses that any amendment to ZIM’s articles of association made without the state’s consent would be invalid, and implicitly warns against attempts to circumvent the rights attached to the golden share. The interests order is designed to limit foreign influence over assets or infrastructure deemed strategically important to the state.
ZIM is a publicly traded company listed on the New York Stock Exchange, but remains subject to the golden share restrictions held by the state of Israel.
Opposition to the potential sale has also emerged from within Israel. ZIM’s workers’ union, the Naval Officers’ Union, and the Histadrut (National trade union center) have all voiced objections to transferring control of the company to foreign hands.
