ZIM currently holds roughly $3 billion in cash reserves accumulated over the years. As a result, market insiders say, the prospective buyers are effectively pricing the company's operating business at just $500 million. Shareholders have reacted angrily to the emerging terms, calling the sum negligible.
"If this offer indeed reflects a market valuation of only $500 million for ZIM's activity, it's tantamount to giving the company away as a gift," one source familiar with the matter told Israel Hayom.
Another source said the deal may be financed in part through a substantial dividend distribution from ZIM itself, with the acquiring company expected to withdraw a dividend equal to about half the transaction's value.
ZIM is currently traded on Wall Street at a market capitalization of $2.7 billion, a figure that is lower than the cash it holds. On paper, a $3.5 billion acquisition would represent a 30% premium over its current share price. However, the company owns 16 commercial vessels outright, assets with significant value. In addition, ZIM leases other ships that comply with stringent air pollution standards, allowing them access to both European and US ports while benefiting from relatively lower carbon taxation compared to older vessels in the market.
Even if the agreement is signed as expected, the transaction is far from complete. Beyond regulatory approvals, shareholders could still oppose the sale at the general meeting required to ratify the deal.
Israel Hayom has learned that officials at the Shipping and Ports Authority and the Transport Ministry were surprised by the announcement. Given that Hapag-Lloyd has Qatari and Saudi shareholders among its investors, Transport Minister Miri Regev instructed Transport Ministry Director-General Moshe Ben-Zaken to immediately examine the implications of the proposed sale.
At the same time, sources familiar with the negotiations said the German company was concerned about the possibility that the State of Israel could exercise a veto right over the transaction. As a result, they reportedly worked to restructure the company in a way that would make it significantly more difficult for the state to block the deal.
