Israeli ocean carrier Zim Integrated Shipping Services has reached preliminary agreement to sell stakes in two Chinese container manufacturers for $50.5 million as it strengthens its balance sheet and focuses on its core liner shipping business.
The carrier said it expects to book a capital gain of $31.5 million from the transactions, which were agreed with a third party but have not been signed.
Zim has received a non-returnable 10 percent down payment, and the two container manufacturers have repaid $11.7 million of loans to the carrier.
“There is no certainty that the agreements to sell the holdings of Zim in the container companies will be signed, and if signed, there is no certainty as to their closing,” Israel Corp., Zim’s parent, said in a statement.
The companies are reported to be CXIC Star Container, in which ZIm has a 55 percent stake, and a CXIC factory in which it has a 25 percent holding.