ZIM’s board of directors issued a public statement yesterday reaffirming the binding nature of its merger agreement with Hapag-Lloyd and Israeli private equity firm FIMI, following an unexpected rival bid from Israeli businessman Haim Sakal. The surprise offer caused ZIM’s stock to jump 9.5% on Wall Street.
Sakal’s proposal, valued at $4.5 billion in cash, exceeds the Hapag-Lloyd and FIMI deal by $300 million. It prices ZIM shares at $37.50 each, representing a 7.1% premium over the agreed-upon price. The offer, detailed in a letter to ZIM chairman Yair Seroussi, also includes a $250 million employee bonus pool and a commitment to maintain ZIM’s fleet of 145 vessels and operational headquarters under Israeli sovereignty.
ZIM’s response was firm: “ZIM’s board of directors has signed a binding agreement to merge ZIM with the Hapag-Lloyd shipping company, and the agreement was approved by a majority of 97% of the shareholders last week. The deal is binding on the company.”
Legal experts emphasize that the board is unable to consider alternative offers at this stage. While the merger agreement includes a superior offer clause with a $150 million break fee, this option expired after last week’s shareholder approval. The board can only revisit other proposals if the Hapag-Lloyd deal fails to close on time and the agreement lapses.
In addition to the ZIM bid, Sakal’s group is reportedly pursuing a separate offer for Israeli airline Arkia.
Source: Splash247