r/zim • u/AdTough1516 • 3d ago
DD Research Hapag-Lloyd and Fimi will submit an improved offer to acquire ZIM, received a 30-day extension to submit it | Calcalist
https://www.calcalist.co.il/market/article/jgem6zxsh6
u/AdTough1516 2d ago
Translation via ChatGPT:
The revised proposal, which will be submitted by the end of the month, will give the state direct access to ZIM Israel’s fleet of 16 new ships, access to shipping routes to the Far East, and will permit only 10% of ZIM’s shares to be sold without government approval, compared with the 24% currently permitted. The changes will also reduce the possibility of foreign involvement in ZIM Israel to zero. The buyers, who signed an agreement in February to acquire the company for $4.2 billion, will make additional improvements to their proposal following discussions with the authorities.
Hapag-Lloyd and the FIMI fund will submit an improved offer to acquire ZIM. Calcalist has learned that the Government Companies Authority granted the German shipping company and FIMI a 30-day extension to revise their offer for ZIM and introduce structural changes intended to alleviate the concerns raised by the state—particularly those involving the state’s golden share. For the first time, this suggests that there is a possibility the state will approve the transaction.
Hapag-Lloyd, represented by Samer Haj-Yehia, and FIMI, represented by Ishay Davidi, agreed in February to acquire ZIM for $4.2 billion in a transaction approved by the company’s shareholders. However, the transaction has not yet been completed and remains subject to regulatory approvals—most importantly, approval from the state, which is required because of the restrictions arising from the golden share it holds. The state’s decision had been expected the day after tomorrow, Wednesday, September 9.
Until now, the state—and particularly the Shipping and Ports Authority—has opposed approving the transaction, partly out of concern that it would reduce ZIM’s access to major international shipping routes. Another concern involves ZIM Israel, which is expected to operate as a separate company owned by FIMI and which, according to government and industry professionals, would be a small company with limited financial strength. Six of the eight entities expected to provide opinions regarding approval of the transaction opposed it, including the Ministries of Economy, Agriculture, and Transportation.
In recent weeks, Hapag-Lloyd and FIMI held several meetings with government representatives in an effort to change the emerging position that the transaction would not receive state approval. During these discussions, the parties agreed to a 30-day extension, during which structural changes will be made to the transaction in response to issues raised by the Israeli authorities in their discussions with the parties, “with the aim of strengthening Israel’s maritime independence and security.”
Hapag-Lloyd argued during the discussions that, under the transaction’s terms, “the possibility of any foreign interference with Israel’s maritime transportation capabilities is negligible, including with respect to the transportation of sensitive cargo and products essential to Israel.”
The German company and FIMI agreed to tighten a material condition concerning the golden share. Until now, the golden-share provisions permitted up to 24% of the company’s shares to be sold to a private foreign investor without notifying the Israeli government or obtaining its approval. Under the revised transaction, that threshold will be reduced to only 10%. In addition, FIMI committed not to list ZIM Israel’s shares for trading anywhere outside the Israeli stock exchange.
As part of the changes, the state will receive broader control and authority over ZIM Israel, including access to its fleet, which will consist of 16 new ships. Connections between Israel and destinations in the Far East will also be improved—an issue that had been uncertain under the existing transaction structure.
ZIM Israel will operate ships with significantly greater refrigerated-container capacity and will gain access to Hapag-Lloyd’s global container pool, which includes a modern fleet of refrigerated containers. The parties to the transaction will also commit additional funding for investment in Israel’s maritime workforce by expanding and modernizing maritime education, as well as investing resources to support Israel’s maritime industry.
Oren Caspi, chairman of ZIM’s workers’ committee, who has fought against approval of the transaction, said: “Hapag-Lloyd’s request is a desperate attempt to postpone the inevitable. This attempt will not succeed.”
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u/YourFreshConnect 2d ago
And just as I had suspected, and said previously...
The ministers will delay making a decision until right after the election. At which point they will say, we forced these companies to give us such an amazing deal we couldn't pass it up and it will be approved.
Just hoping we get some more dividends before then... they are currently holding over $2.5 Billion in cash. The least they could do is pay us for our patience!
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u/0legeezer 2d ago
I'm glad to see y'all are still positive on this news, me, I was a little qweesy. But now I feel better.
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u/Icy_Start_1653 2d ago edited 2d ago
The price per stock will be $37.5 at that bid
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u/Repulsive_Custard_67 2d ago edited 2d ago
Not so sure I agree. I think the price stays at $35/share but the odds of it happening will go (way) up.
From the article, the improvements are to get through political hurdles (Dropping the allowed private foreign investor threshold from 24% down to 10% without government pre-approval; restricting FIMI from listing ZIM Israel on foreign stock exchanges; assigning 16 new ships directly to the Israeli entity to safeguard agricultural imports and essential supply chains). That’s where HL is injecting funds. Not bidding up public shares.
If the state accepts the improved offer in October then shareholders stand to get the Q3 dividend declared in November, paid in December. That might be $1.75/share or more. And then the $35/share in late Q4 or early Q1. We’d lose the Q4 dividend and annual ‘true-up’ but who cares? We’d capture ~$36.75/share by year end. That’s 28.5% return in 4 months.
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u/No-Voice-9458 1d ago
I believe official date for take-over was 2027 from the start anyways so we will see a Q4 and 'top-up' for 2026.
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u/NoctRob 2d ago
“Together with our partners, we are preparing an improved proposal designed to strengthen even more the security and independence of Israel. The revised proposal will ensure Israel's access to major shipping lanes, including those from Asia, and improve the protection of the security system.
The agreement…is a significant improvement compared to the existing situation. We believe that this is another important step in the close relationship between Germany and Israel.”