ZIM Announces Acquisitions of Seven Secondhand Vessels During October 2021

Rhea-AI Summary

ZIM Integrated Shipping Services Ltd. (NYSE: ZIM) announced on October 21, 2021, the acquisition of seven secondhand vessels built between 2007-2009, at a total cost of approximately $320 million. This acquisition includes five 4,250 TEU vessels and two 1,100 TEU vessels, aimed at strengthening the company’s fleet to meet increasing customer demand. ZIM's CEO, Eli Glickman, emphasized the strategic importance of this purchase in enhancing operational capacity while maintaining a robust cash position and focusing on long-term shareholder value.

Positive

• Acquisition of seven secondhand vessels to strengthen operational capacity.
• Total expenditure of approximately $320 million signifies a strong cash position.
• Strategically complements ZIM's primary strategy of chartering-in vessels.

Negative

• Dependence on market conditions may affect the ability to meet growing demand.
• Risks associated with potential fluctuations in chartering market trends.

HAIFA, Israel, Oct. 21, 2021 /PRNewswire/ -- ZIM Integrated Shipping Services Ltd. (NYSE: ZIM), announced today that during the month of October 2021, it purchased seven secondhand vessels (built between 2007-2009) in a number of separate transactions. The vessels purchased include five 4,250 TEU vessels and two 1,100 TEU vessels, for a total consideration of approximately $320 million.

Eli Glickman, ZIM President & CEO, stated: "Since going public our focus has been to allocate capital to strengthen our commercial prospects and create long-term shareholder value. With the opportunistic acquisition of these much-needed vessels, we have drawn on our strong cash position and our agile approach to maintain and expand our operating fleet to meet growing customer demand, while remaining committed to delivering industry superior profitability. Going forward, we will continue to complement our primary strategy of chartering-in the vast majority of our vessels, by selectively acquiring second-hand tonnage when the appropriate opportunities arise."

About ZIM
ZIM is a global, asset-light container liner shipping company with leadership positions in the markets where it operates. Founded in Israel in 1945, ZIM is one of the oldest shipping liners, with over 76 years of experience, providing customers with innovative seaborne transportation and logistics services with a reputation for industry leading transit times, schedule reliability and service excellence. 

Forward Looking Statements
This release contains certain forward-looking statements (as such term is defined in Section 21E of the Securities Exchange Act of 1934, as amended) concerning future events, including forward-looking statements regarding ZIM's ability to meet growing market demand and to provide reliable service to customers, as well as assessment as to the growth trend of the market. These risks and uncertainties include, but are not limited to: the possibility that ZIM will not be able to meet demand from customers, the risk that the growth trend of the market will not continue or be slower than expected; the risk that current trends in the chartering market will weaken or reverse, and other factors detailed from time to time in ZIM's periodic reports and filings with the Securities and Exchange Commission ("SEC"), including ZIM's annual report on Form 20-F filed with the SEC on March 22, 2021. ZIM expressly disclaims any obligation to update or revise any of these forward-looking statements, whether because of future events, new information, a change in its views or expectations, or otherwise. ZIM does not make any prediction or statement about the performance of its securities.

ZIM Contacts

Media:
Avner Shats
ZIM Integrated Shipping Services Ltd.
+972-4-8652520
shats.avner@zim.com

Investor Relations:
Elana Holzman
ZIM Integrated Shipping Services Ltd.
+972-4-865-2300
holzman.elana@zim.com

Leon Berman
The IGB Group
212-477-8438
lberman@igbir.com

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SOURCE ZIM Integrated Shipping Services Ltd.

FAQ

What vessels did ZIM acquire in October 2021?

ZIM acquired seven secondhand vessels, including five 4,250 TEU vessels and two 1,100 TEU vessels.

How much did ZIM pay for the vessels?

ZIM paid approximately $320 million for the acquisitions.

What is the purpose of ZIM's vessel acquisitions?

The acquisitions aim to strengthen ZIM's fleet and meet growing customer demand.

How does ZIM plan to finance the vessel acquisitions?

ZIM intends to leverage its strong cash position for the acquisitions.

What is the significance of ZIM's acquisition strategy?

The strategy aims to complement chartering-in vessels, enhancing fleet capacity and operational flexibility.