ZIM Integrated Shipping: Takeover Battle Is Heating Up
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The Asian Investor31.11K FollowersFollow5ShareSavePlay(10min)Comment(1)SummaryZIM Integrated Shipping Services faces a buyout and takeover battle, with insiders and other shipping companies attracted by its strong cash position and low valuation.Despite a 35% Y/Y drop in freight rates in Q3, management raised its adjusted EBITDA guidance to $2.0–2.2B, reflecting management’s optimism in a stabilization of shipping rates.Shares trade well below book and near cash/investment value, making ZIM an attractive target for a bidding war, if takeover interest intensifies.I expect MSC to have a good chance acquiring ZIM, given their past collaboration with regards to transpacific trade routes, as well as established trust.Key risk remains a drop in average freight rates below $1,000/container, which would signal distressed earnings and threaten the bullish thesis. Monty Rakusen/Cultura via Getty Images ZIM Integrated Shipping Services (ZIM) is caught in the middle of a major buyout and takeover battle as insiders as well as foreign entities are interested in the company's well-capitalized business. The container shipping company reported very strong results forThis article was written byThe Asian Investor31.11K FollowersFollowI am interested in a lot of technology and AI stocks like Google, Nvidia, AMD, Tesla and Amazon.Analyst’s Disclosure:I/we have a beneficial long position in the shares of ZIM either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article. Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.Recommended For You