ZIM Integrated Shipping Services has rejected a new takeover offer from a group led by its management. They believe the proposal does not accurately represent the value of the company, even as they are considering several other acquisition offers during their ongoing strategic review.
The container shipping company, based in Haifa, announced that its board has received interest from various strategic parties looking to acquire all remaining shares. After assessing the latest offer from a group that includes CEO Eli Glickman and shipping executive Rami Ungar, the board decided that the bid “significantly undervalued the Company” and chose to reject it.
ZIM’s strategic review has been in progress for several months and includes various options such as a potential sale, decisions regarding capital allocation, and other strategies to improve shareholder value. To assist in this review, the board has hired Evercore as a financial adviser and brought in Meitar Law Offices and Skadden, Arps, Slate, Meagher & Flom for legal support.
This review is taking place during a challenging time for the container shipping industry. ZIM reported a net income of $123 million for the third quarter, which is an 89% decrease compared to the same period last year, and revenues dropped by 36% to $1.78 billion. Average freight rates fell by 35% to $1,602 per TEU, leading to a 61% drop in adjusted EBITDA to $593 million.
Despite these significant earnings declines, Glickman expressed confidence in the company’s ability to stay profitable, even amid fluctuating global conditions influenced by geopolitics, changing tariffs, and an ongoing global trade war. He noted that ZIM’s modern, efficient fleet and flexible strategies have allowed the company to quickly adjust as freight rates fall.
Even with the drop in earnings, ZIM announced a third-quarter dividend of $37 million, or $0.31 per share, which is 30% of their quarterly net income. Since their IPO in 2021, the company has returned about $5.7 billion to shareholders, which is much higher than the funds raised during the listing.
The board has also appointed two independent directors, Yair Avidan and Dr. Yoram Turbowicz, to enhance their financial and transaction expertise during this review.
Looking to the future, ZIM has raised its outlook for the full year of 2025, now predicting adjusted EBITDA between $2.0 billion and $2.2 billion, and adjusted EBIT between $700 million and $900 million. Although market conditions have weakened as they approach the fourth quarter, Glickman stated that the company’s performance so far justifies this improved forecast.
Established in 1945, ZIM operates in over 90 countries and serves customers at more than 300 ports worldwide. As of September 30, 2025, the company's net debt stood at $2.64 billion, with a net leverage ratio of 0.9x.
ZIM has stated that it won’t provide further comments on the strategic review unless a deal is finalized or the process comes to an end.