The parent company of the container liner company Zim said in a stock exchange filing last week that the liner company has held talks seeking a strategic partner, but said both its debt and the Israel government's "golden" share were obstacles in those negotiations.
Israel Corp., the parent company of Zim, said its shareholders will meet June 27 to consider restructuring the proposal, and if a quorum is not present, the meeting will be delayed until July 4.
In a 299-page translation of a filing with the Tel Aviv Stock Exchange posted on its website, Israel Corp.
, the owner of 99.7 percent of the carrier, said, "In recent years, Zim, with the active assistance of consultants, has taken active steps to look for a strategic partner." Israel Corp. said Zim held "extremely advanced talks" with two companies.
Last week, Israel's Ministry of Finance said it had decided not to waive its special or "golden" share in the company.
In the filing, Israel Corp. said the the special share was created to protect Israel's vital interests in Zim and protect minimum capacity to allow effective use of the fleet in times of emergency.
Zim said it was in talks with the government "to adopt a contractual arrangement that will update the state's rights pursuant to the state's special share under the arrangement, so that the shareholders of Zim shall not be restricted from making any transfers whatsoever of shares of Zim which they own or any other dispositions of these shares, and no restrictions shall apply to Zim of the holding of a minimum fleet of ships owned by it. As of the date of this report, the details of the aforesaid contractual arrangements have not yet been agreed upon in terms of a binding agreement."
Zim noted it will make "an undertaking to the Ministry of Defense to protect the transportation ability under the Israeli flag in the framework of
a particular shipping line and the ability to dock at certain ports."