Israel Corp. rises most in one month on ZIM plan

Israel Corp., the holding company owned by the Ofer family, rose the most in a month in Tel Aviv trading after shareholders approved a plan to inject $450 million into its ZIM Integrated Shipping Services Ltd. unit.

Israel Corp. climbed as much as 5.7 percent to NIS 2,610, the biggest advance since October 1, and traded at NIS 2,590, a 4.9% gain, in afternoon trading in Tel Aviv.

"This result means we've completed a major strengthening and stabilization of the company's capital structure," said ZIM's Chief Financial Officer Allon Raveh. "ZIM will receive an injection of almost half a billion dollars of capital investment from Israel Corp., as well as a further half a billion dollars of new financing from three banking syndicates to finance the acquisition of our new vessels."

Shareholders also approved a $100 million "safety net" for ZIM. The company will give $50m. to ZIM, while Millenium Investments Elad Ltd., which also is held by the Ofers, will provide another $50m., according to a statement filed with the Tel Aviv Stock Exchange on Wednesday.

Israel Corp. was to have contributed $75m. while Millenium was to have provided $25m., the company said October 18.

Haifa-based ZIM will receive a deduction in the $150m. payment owed to the Ofer Group, Israel Corp. said in a statement to the bourse.