Published On: Thu, Jul 3rd, 2014

Israel Corp. wins on Zim Shipping golden share

The court ruling will enable Israel Corporation to sell its Zim stake without state permission.

Idan Ofer,    ZIM

 

Haifa District Court Judge Adi Zarankin today ruled that the restriction on the transferability of shares in Zim would be lifted to 35%. His ruling will enable Israel Corporation to sell its shares in Zim (32% after the Zim debt arrangement is completed) in the future without state approval.

The judge had to make a ruling after the state and Israel Corporation failed to reach an agreement. He gave the state seven days to appeal his ruling, while issuing a stay for its implementation.

Ministry of Finance director general Yael Andorn said, “in its decision, the court gave weight to the state’s argument concerning the need to preserve the State of Israel’s essential interests, a right granted when the company was privatized, as reflected in the golden share. At the same time, we are considering the ruling and whether it should be appealed.”

Meanwhile, the Zim bondholders, headed by Harel and Migdal Insurance companies and the Amitim pension fund, are opposing the appointment of Rafi Danieli as chairman.

Danieli announced his resignation as Zim CEO a few days ago. Israel Corporation planned to appoint him as chairman of Zim in place of Nir Gilad, its current chairman.

The bondholders, who regard Danieli as one of those responsible for Zim’s current difficult situation, are also threatening that if the appointment goes through, they will retract their consent to the debt arrangement for the company. Instead of Danieli, the bondholders are seeking the appointment of Amnon Dick, an experienced manager who has served as CEO of Bezeq and Jafora and as chairman of Elite International.

Published by Globes [online], Israel business news – www.globes-online.com 

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