Israeli shipping company ZIM officially announced on Tuesday that CEO Eli Glickman, together with Rami Ungar, the Israeli importer of Kia vehicles, has submitted a non-binding offer to acquire all of the company’s shares. The offer was made several months ago but is only now being formally disclosed. The partnership between the two and their intention to submit a bid were first reported by Calcalist.
As previously revealed, Glickman and Ungar aim to acquire the company at a $2.4 billion valuation. ZIM shares jumped by over 10% in pre-market trading on the New York Stock Exchange. The company currently trades at a valuation of $2.07 billion.
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Eli Glickman (right) and Rami Ungar.
(Photos: ZIM, Amit Shaal)
ZIM’s board of directors, chaired by Yair Seroussi, announced that it has “commenced a strategic review of alternatives”.
“The review, which has been ongoing for the past several months, includes consideration of potential value creation alternatives, including a sale of the Company and capital allocation and return opportunities, with the goal of maximizing shareholder value,” ZIM wrote in its press release. “In connection with this review, the ZIM Board of Directors has received indications of interest from multiple parties, including strategic interest, which it is evaluating carefully.”
ZIM currently holds around $2.8 billion in cash, while Glickman and Ungar are likely to offer less. The company also carries $5.7 billion in liabilities, including $1.23 billion in short-term debt.
ZIM is subject to Israel’s golden share provisions, requiring a majority-Israeli board, an Israeli chairman, and a fleet of 11 ships available for state use in emergencies. While such terms could dissuade foreign buyers, for a global shipping company they represent only a minor restriction.