Israel's Zim Integrated Shipping Services Ltd. has hired Bank of America Corp.’s Merrill Lynch unit and Barclays Plc to lead a New York IPO, according to two people with knowledge of the matter, "Bloomberg" reports.
The shipping company, controlled by billionaire Idan Ofer’s Kenon Holdings Ltd., is planning to list shares by the first half of next year, the people told "Bloomberg", asking not to be identified because the plans aren’t public.
In the summer, Zim completed a huge debt settlement of $3.4 billion in which banks, bondholders and shipping companies that leased vessels to Zim forewent $1.7 billion for a massive 50% haircut.
Parent company Israel Corp. forewent $238 million, injected a further $200 million into Zim, and extended credit and guarantees worth $60 million. After the debt settlement Israel Corp was left with a 32% stake in Zim, which was transferred to Kenon as part of the spin-off.
Zim had earlier planned to raise more than $500 million in a Hong Kong IPO before falling behind on bond payments during oversupply in the shipping industry, "Bloomberg" reports.
“Zim has been contemplating going public and other financing options since 2007,” Maor Aharoni, a spokesman for the company, told "Bloomberg" by e-mail. “This strategy has not changed. We have nothing to report at this time and don’t comment on rumors.”
Barclays in Israel and a Merrill Lynch spokeswoman in Israel, both declined to comment. Kenon representatives in Singapore, Israel and the US did not immediately reply to calls or e-mails from Bloomberg seeking comment.
Published by Globes [online], Israel business news - www.globes-online.com - on October 8, 2015
© Copyright of Globes Publisher Itonut (1983) Ltd. 2015