Tuesday, May 11, 2010

Zim Parent Looks to Sell Interest in Two Foreign Companies

Israel Corp., the controlling shareholder of Israeli-based ocean carrier Zim Integrated Shipping is in "advanced negotiations" to sell its stake in "two different foreign companies engaged in activities ancillary to shipping, which do not own ships."

Israel Corp., which made the announcement in a letter to the Tel Aviv Stock Exchange, did not name the two companies, but said the total amount of the combined transactions, if successful, would be in the range of $150 million to $190 million.

The deal, according to Israel Corp., could be finalized in the near future with due diligence beginning shortly thereafter.

The sales are understood to be part of the Israel Corp. debt-restructuring plan for Zim, approved in November 2009. The next month, Zim shareholders also approved a debt arrangement in which called for certain steps by the carrier to improve cash flow over the next several years.

Zim currently calls at five ports on the West Coast: Los Angeles, Oakland, Portland, Seattle and Vancouver BC.