Abraham Unger and Eli Glickman reportedly bid to take ZIM private
ZIM CEO Eyes Private Takeover with Shipping Tycoon
In a significant move within the shipping industry, ZIM Integrated Shipping Services’ CEO Eli Glickman is reportedly collaborating with prominent Israeli shipping magnate Abraham Unger to take the company private. According to Israeli business news outlet Calcalist, discussions are centered around a deal valued at approximately $2.4 billion, translating to about $20 per share. This follows previous attempts at a management-led buyout earlier this year and last year, which ultimately did not materialize.
Challenges Ahead for the Proposed Takeover
Abraham Unger, who operates Ray Shipping, has made a name for himself in the shipping sector, particularly as a specialist in car carriers. In addition, he boasts substantial real estate interests, consistently ranking among Israel’s wealthiest individuals. Eli Glickman, who has led ZIM for eight years, successfully listed the company on the New York Stock Exchange four years ago, positioning it as the ninth-largest liner globally.
However, experts from investment bank Jefferies caution that executing a transaction of this scale could face significant hurdles. For Glickman and Unger to successfully take ZIM private, a tender offer for all outstanding shares would necessitate a 95% acceptance rate from shareholders. Furthermore, any merger proposal would require approval from the Israeli government, adding another layer of complexity to the potential deal. As discussions progress, the business community is keenly observing these developments, which could reshape the future of ZIM.
