ZIM News & Events

ZIM Integrated announced the appointment of Chen Lichtenstein as its new president and CEO following the resignation on April 15 of Eli Glickman, the existing president and CEO. The appointment of Lichtenstein will become effective as of July 1, at which time Lichtenstein will also become a member of the board of directors of the company. The employment agreement between the company and Lichtenstein will be brought to shareholder approval as required by the Israeli Companies Law of 1999. From 2020 to 2023, Lichtenstein served as the CFO at Syngenta.

Reports Q1 revenue $1.39B vs. $2.01B. Eli Glickman, ZIM President & CEO, stated, "Our Q1 results were broadly in line with our expectations, reflecting a softer freight rate environment, coupled with weaker demand. Importantly, as the proposed transaction with Hapag-Lloyd moves forward and we continue to navigate the ongoing hostilities affecting Israel and the Middle East, ZIM remains firmly focused on service reliability and disciplined execution. We appreciate the strong support of our valued customers, who have remained engaged and constructive throughout this period." Glickman added, "The conflict in the Persian Gulf has sparked a sharp increase and significant volatility in bunkering costs. While the impact on Q1 results was minimal, we expect a more meaningful effect in the second quarter, before our actions to offset these costs, including increased freight rates and bunker-specific surcharges, begin to take hold. It is also important to note that ZIM is likely to see incremental benefits from our early adoption of LNG technology and long-term agreements with Shell securing LNG supply on competitive terms. With a fleet comprised of approximately 40% LNG-powered capacity, ZIM not only offers shippers a pathway to significantly reduced carbon emissions but maintains a fuel-efficient and cost-effective fleet."

In accordance with its dividend policy and in light of the net loss recorded in the Q1, the Company will not pay a dividend to shareholders on account of its Q1 results. All future dividends are subject to the discretion of Company's Board of Directors and to the restrictions provided by Israeli law. In addition, distribution of special dividends is restricted under the merger agreement between the Company and Hapag-Lloyd.

The Skaal Group, headed by Haim Skaal, submitted an offer to acquire full ownership of ZIM Integrated, in partnership with investors, at a value of $37.50 per share, or $4.5B in cash, which is $300M higher than the offer from the shipping giant Hapag Lloyd, according to a translation of a Hebrew-language report from Ynet.