Management buyout rumor boosts ZIM

Israeli shipping company ZIM Integrated Delivery Service (NYSE: ZIM) attracted interest at the end of last week, with the share price rising nearly 5% after investment website Street Insider cited sources that the company’s CEO Eli Glickman said it was considering a management-led acquisition. The price is not mentioned.

The report follows a notice by Kenon Holdings, managed by Idan Ofer in December, selling the remaining shares at Zim, leaving the company without dominant shareholders.

Zim’s stock has fallen 11% so far this year, with a market capitalization of $2.5 billion. Last year, inventory was very unstable and fell as shipping prices fell, then rose again due to the new threat of Yemen’s Houthi rebels shipping in the Red Sea, increasing the distances in transport routes, allowing Zip to raise prices again.

Zim went public on the New York Stock Exchange after receiving two major debt settlements. In 2009, it changed its $7 billion in debt, and in 2014 it gave a 50% haircut on its $3.4 billion in debt. The flotation was conducted with a pre-money valuation of $1.5 billion. After a period of time it drifted, the stock benefited from the next wind in the form of rising shipping costs, and the company’s market capitalization peaked at $10 billion in 2022.

Investing.com cites Jefferies Analyst Omar Nokta saying that investors could oppose such transactions at current stock prices, and that Israeli control rules could make trading difficult.

Zim replied, “The company is not responding to market speculation.”

Published by Globes, Israel Business News – En.Globes.co.il – March 9, 2025.

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