Zim Board Confirms Review of “Strategic Alternatives” After Buyout Proposal

Container shipper Zim, which ranks at number 10 by global capacity, confirmed that its board is undertaking a “strategic review of alternatives.” It has been underway for the “past several months,” the company said in a statement confirming that it has multiple proposals in addition to a proposed management-led buyout.

The board said that it is considering potential value creation alternatives, including a sale of the company and capital allocation and return opportunities. Reports surfaced in August that long-time CEO and president Eli Glickman was leading a proposed management buyout offer that also includes Israeli businessman Rami Ungar, who controls Ray Shipping, an operator of RoRo car carriers and an importer of Kai Motors into Israel. Media reports suggest that four members of senior management are also participating in the buyout.

Zim termed the proposal it has received from Glickman and Ungar as “preliminary” and “non-binding.” Terms have not been announced, but the Israeli media reports the offer valued Zim at $2.3 to $2.4 billion while it was trading at around $1.9 billion. The stock price is up dramatically in the past month, with the market value now exceeding $2 billion.

The offer from the Glickman-Ungar group has been rejected, reports Calcalist, which was the first to also report the proposed acquisition. For its part, the board only said it had received the proposal and has also received “indications of interest from multiple parties, including strategic interest, which it is evaluating.”

The proposals to acquire the company come just five years after Zim went public on the New York Stock Exchange. Glickman has not spoken publicly about the motivation to take the company private, but the Zim share price has been very volatile.

Zim has been strongly impacted by not only market conditions but also the geopolitical situation. Last week, management reported third quarter results, and while the company is profitable, EBITDA was down 61 percent, and TEU volume carried decreased 5 percent. Revenues were off 36 percent, with management also citing changing tariff policies and the ongoing global trade war. It, however, increased the low end of the range for its full-year guidance, emphasizing the company’s resilience.

The company has a large debt, but also maintains a large cash position. Analysts note that it is also a high-cost operator, which could disadvantage Zim as the market continues to weaken for container shipping.

Eli Glickman has been CEO and president since 2017 and is credited with a turnaround for the company and saving it from insolvency. After reports that he was preparing the buyout offer, a group of shareholders pushed the board to add more independent directors. The board reported the recent addition of two directors, which the Israeli media outlet Globes reports are former supervisor of banks at the Bank of Israel Yair Avidan, and a former competition commissioner and head of the prime minister’s bureau Dr. Yoram Turbowicz.

Zim, which marked its 80th year in 2025, has emphasized its flexibility in the fleet and focus on midsized vessels and niche markets. It has been modernizing its fleet in partnership with owner/lessor Seaspan and was among the first to introduce LNG dual-fuel containerships. The company has a capacity of approximately 700,000 TEU, and a large order book with 163,000 TEU capacity according to Alphaliner.

An acquisition of Zim could be complicated by a Special State Share that was issued to the Israeli government in 2004 when the company was privatized. A potential buyer that would exceed 24 percent of the stock must first notify Israel, and a position over 35 percent requires Israeli approval. The share requires the company to remain incorporated in Israel, and at least a majority of the members of the Board of Directors, including the chairperson of the board and chief executive officer, must be Israeli citizens. The company must also maintain a fleet of at least 11 vessels, with at least three being cargo vessels, but it currently has a waiver permitting it to own fewer than the required number of ships. The State of Israel must also consent in writing to any winding-up, merger, or spin-off unless the Special State Share would remain effective.