Zim purchases seven new vessels for $320m

Zim Photo: Shutterstock
Zim Photo: Shutterstock

Buoyed by the global shipping boom, Zim's share price has more than tripled since its IPO in January.

To meet spiraling demand amid the global shipping boom, Zim Integrated Shipping Services Ltd. (NYSE: ZIM) has announced that the company has purchased seven secondhand vessels for $320 million. The vessels purchased include five 4,250 TEU vessels and two 1,100 TEU vessels, which were built between 2007-2009, and were purchased in several separate transactions this month, the company added.

ZIM President & CEO Eli Glickman said, "Since going public our focus has been to allocate capital to strengthen our commercial prospects and create long-term shareholder value. With the opportunistic acquisition of these much-needed vessels, we have drawn on our strong cash position and our agile approach to maintain and expand our operating fleet to meet growing customer demand, while remaining committed to delivering industry superior profitability. Going forward, we will continue to complement our primary strategy of chartering-in the vast majority of our vessels, by selectively acquiring second-hand tonnage when the appropriate opportunities arise."

Zim held its IPO on Wall Street in January at a company valuation of $1.75 billion, since then the company's share price has more than tripled, giving a market cap of $5.68 billion.

Published by Globes, Israel business news - en.globes.co.il - on October 22, 2021.

© Copyright of Globes Publisher Itonut (1983) Ltd., 2021.

Zim Photo: Shutterstock
Zim Photo: Shutterstock
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