The company that if the preconditions for executing the deals are fulfilled, the total consideration will be in the range of US$150-US$190 million
Israel Corporation, controlling shareholder of Zim Integrated Shipping Services Ltd. issued an announcement last week to the Tel Aviv Stock Exchange noting that "Zim is in advanced negotiations, in accordance with its business plan, to sell its holdings intwo different foreign companies engaged in activities ancillary to shipping, which do not own ships”.
The company did not specify which are the companies under considerations, but noted that if the preconditions for executing the deals are fulfilled, the total consideration will be in the range of US$150-US$190 million.
The statement to the Tel Aviv Stock Exchange, Israel Corp said documents related to the two separate deals could be signed in the near term and due diligence might begin on one of the transactions.
Israel Corp shareholders approved last November a debt restructuring plan for Zim, which has been hard hit by the slowdown in global trade.
It is understood that the sale of the companies is part of the Zim's plan for meeting its projected cash flow in the next few years, as published in the debt arrangement approved by shareholders at the end of 2009.