The Wall Street Journal reported on Friday that Israel’s biggest shipping company, Zim Integrated Shipping Services (ZIM), examines a possible sale of its global network, to become a regional services in the Mediterranean.
WSJ cites “sources with direct knowledge about the matter, ” that say “Zim is on the shelf.”
Will you offer us a hand? Every gift, regardless of size, fuels our future.
Your critical contribution enables us to maintain our independence from shareholders or wealthy owners, allowing us to keep up reporting without bias. It means we can continue to make Jewish Business News available to everyone.
You can support us for as little as $1 via PayPal at office@jewishbusinessnews.com.
Thank you.
“The company’s investment banking traveling around the world with material, and creating interest among leading global shipping companies and other investors, ” the source said.
Another entity told the Journal “Zim’s plan is to split the international part of the company that it wants to sell, while continuing to hold some of the ships operations in the Mediterranean.”
ZIM owns and operates a fleet of 13 vessels, including 12 container ships and one offshore supply vessel (OSV), according to data provided by VesselsValue.
VesselsValue shipping data company ZIM owns and operates a fleet of 13 vessels, including 12 container ships and one offshore supply vessel (OSV).
VesselsValue estimates the fleet of ZIM approximately $267 million. Zim’s spokesman denied international operations up for sale.
Last month, on October 13 ZIM announced its plans to launch an additional service on its Asia-Pacific North West trade route, China Express Northwest Service (CEN): Xingang, Qingdao, Shanghai (China), Prince Rupert (Canada), Xingang.
Service was about to start on October 25th.
“ZIM is proud to add Prince Rupert to its portfolio of services in The Pacific North West, ” Nissim Yochai, ZIM VP Trans-Pacific Trade, said in the announcement.
On October 2nd, Zim reported a second-quarter loss of $74.2 million. The compny said it had agreed with creditors to defer $115 million of coming payments until 2018. Its net debt stands at $1.1 billion.
“Zim denies the rumors that it plans to sell to its global shipping operations, ” the spokesman said. “We are the global players for decades and we have no intention to stop (provide) services to customers around the world.”
Zim held (32%) by Kenon Holdings Ltd., a holding company based in Singapore and listed in the U.S. and Israel. Banks and shipowners hold remainder. Kenon spokesman said he will not add to Zim response.
