A new $4.5 billion bid for Zim has added fresh uncertainty to Hapag-Lloyd’s planned takeover of the Israeli shipping company, despite shareholders already approving the deal. Israeli businessman Haim Sakal submitted an unsolicited all-cash offer for Zim that exceeds the joint bid from Hapag-Lloyd and Israeli investment fund FIMI by about $300 million.
According to reports, Sakal offered US$37.50 per share and pledged to keep Zim under Israeli control. His proposal also includes a US$250 million employee bonus package and a commitment to maintain the company’s fleet and headquarters in Israel.
The announcement pushed Zim’s stock price up nearly 10 percent in New York trading.
Zim’s board responded quickly, stressing that the merger agreement with Hapag-Lloyd and FIMI is legally binding. Shareholders approved the transaction last week with support from 97 percent of votes cast.
“ZIM’s board of directors has signed a binding agreement to merge ZIM with the Hapag-Lloyd shipping company, and the agreement was approved by a majority of 97% of the shareholders last week. The deal is binding on the company,” the company said in a statement.
Legal experts told Israeli media that the board now has very limited ability to consider alternative offers. Although the merger agreement originally included provisions for a superior proposal, those options reportedly expired after shareholder approval.
Questions also remain about how Sakal plans to finance the acquisition and whether he has undisclosed partners behind the bid.
Still, the proposal received support from Zim’s workers committee, which described it as an “Israeli alternative” to foreign ownership of the country’s national carrier.
The Israeli government must still approve the Hapag-Lloyd transaction. Israel holds a special “golden share” in Zim, giving the state authority to block decisions that could affect national security interests.
The debate over ownership has become politically sensitive in Israel. Supporters of the Hapag-Lloyd-FIMI deal argue that Zim already lacks a controlling Israeli shareholder because the company is publicly traded in New York.
FIMI director Ishay Davidi previously told a Knesset committee that restructuring the company around a smaller Israeli-controlled core fleet could actually strengthen national interests.
Zim currently operates a fleet of about 145 vessels and remains Israel’s only major ocean carrier.
