'Golden share' makes ZIM a tough takeover target, CEO Glickman says

[Transportation of ZIM sea containers]
Volodimyr Trofimov/iStock Editorial via Getty Images

The Israeli government's "golden share" in ZIM Integrated Shipping (NYSE:ZIM [https://seekingalpha.com/symbol/ZIM]) requires that the majority of the board are Israeli, including the Chairman and CEO, which Eli Glickman said narrows down the field [https://www.tradewindsnews.com/containers/-golden-share-zim-a-takeover-target-for-a-narrow-field-of-investors-with-a-high-risk-appetite/2-1-1863936] of people who may be interested in the company, TradeWinds reported Thursday.

ZIM (NYSE:ZIM [https://seekingalpha.com/symbol/ZIM]) President and CEO Eli Glickman declined to comment on a rumored privatization effort linking him with Israeli shipping magnate Abraham Unger, but "this is a high-risk market," he said, according to the report. "Not that many people are going to take this risk."

Glickman also noted that it took Idan Ofer, whose Kenon Holding was ZIM's (ZIM [https://seekingalpha.com/symbol/ZIM]) largest shareholder until selling its 20.7% stake late last year, 20 years to recover his investment in the company after his interests took control of the company in 2004.

The restrictive provisions involved in any transfer of ZIM's (ZIM [https://seekingalpha.com/symbol/ZIM]) ownership may have taken its toll in the financial markets, with shares slumping 22% since buyout rumors surfaced on August 11 [https://seekingalpha.com/news/4483296-zim-integrated-shipping-ceo-glickman-to-lead-effort-to-go-private-report].

Ungar reportedly sought to buy ZIM (ZIM [https://seekingalpha.com/symbol/ZIM]), take it private, then merge it with his company Ray Shipping in a cash-and-stock deal, potentially bringing in Greek investors to accomplish the transaction.

MORE ON ZIM INTEGRATED SHIPPING

* ZIM Integrated Shipping: Accept The Loss And Learn To Let Go [https://seekingalpha.com/article/4817203-zim-integrated-shipping-accept-the-loss-and-learn-to-let-go]
* ZIM Integrated Shipping: Already Burning Cash, It Will Get Worse. Dividend Will Disappear [https://seekingalpha.com/article/4817022-zim-already-burning-cash-it-will-get-worse-dividend-will-disappear]
* ZIM Integrated Shipping: $20 Offer Too Low, FY2025 Guidance Appears Bleak (Rating Downgrade) [https://seekingalpha.com/article/4816229-zim-integrated-shipping-20-offer-too-low-fy2025-guidance-appears-bleak]