Israel Corp. to spin off stake in Zim container line

Israel Corp. to spin off stake in Zim container line
http://www.haaretz.com/business/.premium-1.620647
Corianne Egan, Associate Editor Journal of Commerce | Oct 14, 2014 12:42PM EDT

Israel Corp. will shift its stake in Zim Integrated Shipping Services, along with several other companies, to a holdings company that will be listed on stock exchanges in New York and Tel Aviv, the company announced.

The company said it will move its stakes in four companies, including container carrier Zim, to Kenon Holdings, which incorporated in Singapore. Kenon, which will be valued at $1.5 billion, will also receive an influx of nearly $100 million and a $200 million line of credit from Israel Corp., according to Middle Eastern news outlet Haaretz.

Israel Corp. announced it will split into two parts, a restructuring expected to be completed by the end of 2014. Led by new CEO and former CFO Avisar Paz, the restructuring requires Israel Corp. to transfer its stakes in Zim, along with stakes in Chinese automaker Qoros, computer chip manufacturer TowerJazz and electric power company IC Power, to Kenon.

Israel Corp. will continue to manage its stake in Israel Chemicals, Oil Refineries, and IC Green.

Zim entered the final stages of debt restructuring after reaching an agreement with the Israeli government in late July. As part of that deal, Israel Corp. agreed to a nearly $3.4 billion deal, which included $200 million in new equity, along with forgiving nearly $225 million in loans.

JOC.com has reported that Zim, the only major carrier not aligned with a major east-west alliance, would likely seek to join forces with other carriers after the restructuring was completed.

The carrier has been in the news of late because of pro-Palestine group protests in a few U.S. ports, which have prevented ships from unloading in Port of Oakland and caused delays in docking at the Port of Tampa Bay.

According to Alphaliner, Zim ranks 19th on the Top 100 list of carriers, deploying a fleet totaling 336,861 TEUs, 1.8 percent of the global fleet.

Contact Corianne Egan at cegan@joc.com and follow her on Twitter: @CEgan_JOC.