Israeli billionaire Idan Ofer has sold further shares in the shipping company Zim. The value of the shipping company had recently risen significantly.
Ofers Kenon Holdings is the largest shareholder in Zim, the ninth-largest shipping company in the world, with a 16.5% stake.
In the past year, the value of Zim Integrated Shipping Services has risen by 260%. The shipping company announced that the third quarter of 2024 was one of the most successful in the company’s 75-year history. Zim generated revenue of US$2.77bn, compared to US$1.27bn in the same period last year. This was primarily due to higher freight rates and increased freight volumes.
Zim posts record quarter
According to President and CEO Eli Glickman, the decision to expand the routes in the Pacific and modernise the fleet was also largely responsible. “With the addition of new, larger, more modern and cost-efficient vessels to our fleet, we have realised further benefits from our strategic investments in the capacity we operate,” said Glickman.
The Houthi attacks in the Red Sea are also likely to have had a major impact on the result. Instead of weakening the Israeli economy, the crisis and the associated reaction of the shipping industry to avoid the Red Sea in favour of the Southern Cape caused freight rates to rise – and made Zim a winner of the crisis.
Kenon Holdings and its owner, Idan Ofer, immediately used this development as a springboard to profitably divest themselves of further Zim shares. The 16.5% stake held is worth US$472m. Kenon has gradually withdrawn from Zim’s business in recent years. In 2021, it still held 30% of the shipping company; six months ago, Kenon sold shares worth US$111m.
