Alphaliner says ZIM is currently the 10th largest container shipping firm. Image Credit: ZIM
Shareholders of Israeli container shipping firm ZIM Integrated Shipping Services have overwhelmingly approved Hapag-Lloyd’s planned takeover of the company.
At a special shareholders’ meeting held in Haifa, 97.4% of investors voted in favour of the acquisition proposal, sector specialist Alphaliner said in an emailed report on Tuesday.
German container shipping company Hapag-Lloyd and its partners have agreed to pay $4.2 billion in cash for ZIM and assume an additional $2.7 billion in debt.
The agreed offer price of $35 per share represents a significant premium to ZIM’s closing share price of $26.07 on Monday.
However, investors rejected a proposed three-year executive compensation package that could have increased pay for senior management, including CEO Eli Glickman.
While some retention bonuses were approved, the broader compensation policy secured support from only 34.59% of shareholders.
Completion of the deal still depends on regulatory approvals, which may face additional scrutiny due to Israel’s “Golden Share” policy designed to protect national security interests.
Under the agreement, ZIM’s local Israeli activities will be transferred to Hapag-Lloyd’s Israeli partner, investment firm FIMI.
The takeover discussions have also sparked labour concerns.
Around 900 ZIM employees staged a strike two weeks ago over terms linked to the planned transfer of control, with negotiations between management and unions still ongoing.
ZIM, currently ranked as the world’s 10th largest container carrier, went public in 2021 with a valuation of about $1.5 billion. Hapag-Lloyd said the acquisition will be financed through existing cash reserves and external funding of up to $2.5 billion.
Ship & Bunker News Team
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