ZIM Integrated: Hapag-Lloyd $35 Offer Likely To Be Accepted

Envision ResearchInvesting Group LeaderFollow5ShareSavePlay(8min)Comments(3)SummaryZIM Integrated Shipping has received a $35/share cash acquisition offer from Hapag-Lloyd.The offer implies a 1.06x P/B ratio, nearly double ZIM's historical average, and is highly attractive given ZIM's cyclical earnings and unpredictable future dividends.Shareholder and board approval is likely due to the compelling financial incentive, but regulatory, geopolitical, and labor-related risks remain.I see the current spread between ZIM's trading price ($29.3) and the offer price as an attractive arbitrage opportunity.I do much more than just articles at Envision Early Retirement: Members get access to model portfolios, regular updates, a chat room, and more. Learn More »bee32/iStock via Getty Images ZIM acquisition: new development My last analysis on ZIM Integrated Shipping Services Ltd. (ZIM) was published on Jan 13 under a title of "ZIM Integrated: Takeover Uncertainties Met With Muted Volatility - Buy Call Options". The article ratedThis article was written byEnvision Research20.03K FollowersFollowEnvision Research, aka Lucas Ma, has over 20+ years of investment experience and holds a Masters with in Quantitative Investment and a PhD in Mechanical Engineering with a focus on renewable energy, both from Stanford University. He also has 30+ years of hands-on experience in high-tech R&D and consulting, housing sector, credit sector, and actual portfolio management.He leads the investing group Envision Early Retirement along with Sensor Unlimited where they offer proven solutions to generate both high income and high growth with isolated risks through dynamic asset allocation. Features include: two model portfolios - one for short-term survival/withdrawal and one for aggressive long-term growth, direct access via chat to discuss ideas, monthly updates on all holdings, tax discussions, and ticker critiques by request.Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.