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.
An Israeli cargo ship [illustrative]
Photo: Ariel Jerozolimski [file]
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.
