Zim Integrated Shipping Services (NYSE: ZIM) CEO and president Eli Glickman has announced that he is stepping down after nine years at the helm of the company. He is expected to continue in his position for a transition period of about six months. The company’s board of directors announced that it will begin searching for a new CEO for the company.
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Glickman’s decision, he explained, stems from the fact that the company’s board of directors preferred a different acquisition offer, rather than the bid by the consortium led by Glickman himself.
“In recent months, the company’s board of directors has advanced a merger process with Hapag-Lloyd. I respect the board of directors’ decision, but after thinking about it, I have come to the conclusion that I cannot continue to serve as CEO of ZIM.”
Glickman added, “When I joined ZIM nine years ago, I did so after deep thought, but with absolute clarity about the goals I had set. Over the years, ZIM has led an unprecedented transformation and achieved unprecedented record results. “The name Zim has become a source of pride and a household name in the shipping industry.”
Glickman’s resignation comes in the wake of the board of directors’ unwillingness to accept the offer of Glickman himself and businessman Rami Ungar to acquire control of the company and the board’s preference for a sale to German shipping giant Hapag-Lloyd, the fifth largest shipping company in the world, and Yishai Davidi’s FIMI fund in a deal worth $4.2 billion ($35 per share), a price that was a premium of almost 59% on the day of the announcement.
The deal is still subject to regulatory approvals, as, among other things, the State of Israel has a ‘golden share’ in the company, and government officials, including the Ministry of Transport and the Government Companies Authority, have already announced that they will oppose the deal. Zim’s workers’ committee also opposes the sale and fears for their future.
Investors were recently surprised to discover that Glickman had sold a significant portion of his holdings in the company in two installments, for a total consideration of $39.5 million.