Troubled Zim unloads unnamed subsidiary on undisclosed buyer

ISRAELI flag carrier Zim Line is selling its stake in an unidentified foreign subsidiary for US$130 million - $170 million on the basis of a signed non-binding agreement from a secret buyer.

The unit is reportedly involved in a "shipping related activity and does not hold ships," according to London's Containerisation International. This covers a wide range of possibilities including Tarragona stevedore and terminal operator Contarsa in which Zim Ports holds 40 per cent.

Zim's parent, Israel Corp, said in a note to the Tel Aviv Stock Exchange that it has granted an unnamed foreign corporation 45 days to exclusively finalise the deal with an option for another 45-day exclusivity period, reported American Shipper.

Financially troubled Zim has been tested in the container shipping downturn and has been rescued by a capital injection from Israel Corp shareholders to meet day-to-day costs and to finance ordered newbuilds.

Despite the 2010 rebound, the company still suffered an US$82 million first quarter loss, saying its average freight rates were 12 per cent lower than in the first quarter of 2009 (though higher than in the fourth quarter of 2010). Zim had operating losses of $675 million in 2009 and $260 million in 2008.
(Source:www.schednet.com)