Holding company Israel Corp will invest $250 million in its shipping subsidiary Zim to fund Zim's expansion after it postponed plans for an initial public offering. The offering was put off due to market weakness, Israel's largest holding company said in a statement on Monda Israel Corp said in February that Zim was planning a possible IPO in Hong Kong or Tel Aviv.
The investment in Zim will be made through a rights offering to shareholders. Israel Corp owns 98.4 percent of Zim. The conditions of the rights offering will be determined in the coming days.
The investment will enable Zim to continue with its plan to expand and acquire new ships.
Zim, Israel's largest container shipping firm, has acquired 21 ships to be delivered between 2009 and 2012. It is also upgrading its computer system and its agencies around the world.
Zim's first-quarter results were hurt by rising fuel prices and the decline in the dollar and this was also a factor in postponing the public offering, Israel Corp said.
The investment in Zim will be made through a rights offering to shareholders. Israel Corp owns 98.4 percent of Zim. The conditions of the rights offering will be determined in the coming days.
The investment will enable Zim to continue with its plan to expand and acquire new ships.
Zim, Israel's largest container shipping firm, has acquired 21 ships to be delivered between 2009 and 2012. It is also upgrading its computer system and its agencies around the world.
Zim's first-quarter results were hurt by rising fuel prices and the decline in the dollar and this was also a factor in postponing the public offering, Israel Corp said.