Hapag-Lloyd and the FIMI investment fund submitted an improved offer to the Government Companies Authority on Thursday to acquire shipping company ZIM.
The main improvement in the proposal is the allocation of additional shipping routes to the Far East for ZIM Israel, on top of the three routes to Europe and the United States included in the previous offer.
(Photo: ZIM)
As Calcalist previously reported, Hapag-Lloyd’s CEO arrived in Israel on Wednesday ahead of the submission of the joint document, only part of which was disclosed in a statement to the media.
Under the proposed deal structure, ZIM Israel would be separated from ZIM’s global operations and sold to FIMI.
The new proposal could increase the possibilities for future changes in the ownership of ZIM Israel.
The statement included vaguely worded language saying that “authorized ZIM employee teams responsible for cargo destined for and departing from Israel will be transferred to ZIM Israel,” although the practical meaning of the clause remains unclear. The proposal also includes a commitment to increase the number of Israeli seafarers.
Another improvement in the offer states that “ZIM Israel will own a core fleet of container ships and will have access to Hapag-Lloyd’s global container fleet under a long-term commercial agreement. This will increase the capacity available for transporting refrigerated cargo and other essential goods to and from Israel.”
However, the number of vessels ZIM Israel would receive under the deal has not changed: 16 ships, 12 of which the state could requisition during a crisis, as needed, through the golden share it holds.
The proposal also states that “Hapag-Lloyd and FIMI listened carefully to the position of the State of Israel and formulated significant improvements to the offer, with the goal of establishing a strong shipping company.”