- Shares of the company, founded in Israel in 1945, soared nearly 20% during overnight trading hours on Monday.
- Zim said on Monday that Hapag-Lloyd was buying it for $35 per share, which represents a 126% premium to the company’s unaffected stock price of $15.50 on August 8.
- The transaction is expected to close by late 2026, and the new company is expected to have a large and modern fleet of over 400 vessels.
Zim (ZIM) shares jumped over 7% last week, closing higher in their best week since late December and are likely heading for another week in green after the shipping company announced that it has entered into a merger agreement, under which Hapag-Lloyd will acquire it for $4.2 billion.
Shares of the company, founded in Israel in 1945, soared nearly 20% during overnight trading hours on Monday. It is a global container liner shipping company with operations in more than 90 countries, serving about 33,000 customers in over 300 ports worldwide.
Zim has been reviewing strategic alternatives for the past several months and has received several proposals, including one from an entity owned by the company’s CEO, Eli Glickman, and Rami Ungar. The board in December rejected the proposal, citing that it had “significantly undervalued” the company and informed the management-led entity that the revised proposal had been declined.
The Final Buyout
Zim said on Monday that it was being bought out for $35 per share, which represents a 126% premium to the company’s unaffected stock price of $15.50 on August 8, prior to market speculation about the company receiving buyout offers.
In connection with the transaction, Hapag-Lloyd has entered into a binding memorandum of understanding with FIMI, under which the Special State Share held by Israel in ZIM is intended to be transferred to a newly created subsidiary of FIMI. FIMI, headquartered in Tel Aviv, Israel, is the country's largest and leading private equity fund with more than $11 billion in assets under management.
FIMI will create a new container-network operator and liner-service provider, "New ZIM", with owned tonnage, incorporated in Israel. The new business, operating under the ZIM trademark, will be owned and run by FIMI, supported by a long-term strategic partnership with Hapag-Lloyd.
The transaction is expected to close by late 2026, and the new company is expected to have a large and modern fleet of over 400 vessels, capacity exceeding 3 million TEU, and an annual cargo volume of more than 18 million TEU in 2027.
The focus of the new company will be on connecting Israel to major ports in the European Union, the U.S., the Mediterranean Sea and Black Sea, which will have access to Hapag-Lloyd's Gemini network.
What Is Retail Thinking?
Retail sentiment on ZIM jumped to ‘extremely bullish’ from ‘bearish’ territory a week ago, with message volumes at ‘extremely high’ levels, according to data from Stocktwits.
A bullish user on Stocktwits said that the stock could hit the $30 mark and called it a “cash machine.”
Shares of Zim have gained nearly 13% in the last 12 months.
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