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Zim wins court battle
Israeli container line Zim has won an important victory in court to decide its own future by forging shipping alliances and carrying out an IPO.
Haifa district court judge Adi Zarankin eased the terms of the government “golden” blocking share in the shipowner, allowing share transfers of up to 35%, from 24% previously, the Haaretz daily reported.
But the state can still apply for a court ruling on any stock sale if it believes its national interest is threatened.
Zim said the ruling allowed it “to move forward with the debt arrangement and the company’s recovery.
“The decisions gives both sides what they wanted. We hope the government won’t go ahead with legislation on the matter of golden shares.”
The finance ministry said it was happy with the deal, despite it shifting some power over Zim out of its hands and to the court.
It prevented the court setting the threshold for stock transfers at 40% of Zim, however.
The move will allow Zim's restructuring deal to swap $1.4bn of its $3.4bn debt into equity to go through, after shareholders approved it last week.
Idan Ofer-controlled Israel Corporation will inject $200m into Zim and see its near 100% stake cut to 32%, as well as writing off $238m of debt and lending $50m.