Israel Corp injected $246 million into Zim

The newly injected capital will enable Zim to move forward with its strategic program and to expand its containership fleet
 
Israel Corp. Israel’s largest holding company and a global player with core holdings in fertilizers and specialty chemicals, energy, shipping and transportation, said last week it had purchased 10.4 million shares of its shipping subsidiary Zim Integrated Shipping Services Ltd. for a total of $246 million.
 
The investment follows a rights issue by Israel Corp to raise cash for its shipping subsidiary.
 
The newly injected capital will enable Zim Integrated Shipping Services Ltd. to move forward with its strategic program, which includes the expansion of its containership fleet.
 
Zim Integrated Shipping Services Ltd. ordered 21 mega size containerships, which the company is due to take delivery of from next year through mid 2012.
 
Last year the company purchased 8 ships of 12,600 TEU with an option to buy one more.  The ships will be built in Korea and will be delivered at the beginning of 2012. The cost of each ship is of about $170 Millions, and their size and capacity will be compatible with the characteristics of the Panama Canal once its enlargement is completed. The purchase of these mega container ships adds to the 12 ships already ordered by the company last year from Hyundai, i.e. 8 ships of 10,000 TEU and 4 ships of 8,200 TEU. These ships will be delivered at the end of 2009 and beginning of 2010. This new purchase of very large containerships(“VLCS”) is another step in ZIM’s rapid growth plan, which to date is one of the fastest growing companies in the container shipping industry, with the aim tostrengthen its position of leading global carrier.