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By Alex Lennane
A group of dissident shareholders has escalated its campaign to reshape the board of Israeli ocean carrier Zim.
It has prompted the company’s independent directors to issue a detailed investor presentation and letter urging shareholders to reject the trio’s nominees at the upcoming annual/extraordinary general meeting.
The dissident group, Mor Gemel & Pension, Reading Capital, and Sparta 24, wants to replace nearly half of Zim’s board, arguing for changes to the company’s direction and capital allocation.
Their push triggered a forceful response from the board, which warned that the campaign was based on “misleading assumptions” and posed risks to shareholder value.
In its letter, the directors defended their track record and said Zim had undergone a major operational and financial transformation since its 2021 IPO, and “delivered peer-leading total shareholder returns of more than 300%, significantly outperforming larger global carriers and the S&P 500”, as well as expanding its fleet, and returning $5.7bn in dividends.
The board also highlighted Zim’s ongoing strategic review, launched after rejecting an unsolicited proposal from CEO Eli Glickman and Rami Ungar as materially undervaluing the company.
The board argue that the dissident nominees lack relevant experience in global shipping, logistics, and public company governance, and warned that their election could disrupt the strategic review. It also accused the dissident group of failing to file required securities disclosures, despite claiming to hold more than 5% of Zim’s shares.
Proxy advisory firm ISS has sided with the company, recommending that shareholders vote for all eight Zim nominees, against the dissident slate.
Zim urged shareholders to follow that recommendation, warning that the dissidents’ proposals, which include calls for a large special dividend reported in Israeli media, could threaten the company’s liquidity in a cyclical industry that relies on financial flexibility.
The shareholders are scheduled to vote on 26 December.
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