The conversion is part of the recovery plan for the shipping company.
Israel Corporation (TASE: ILCO) has converted $25 million of the reserve for subsidiary Zim Integrated Shipping Services Ltd. into equity, as part of Zim's recovery plan. The money is part of the $50 million reserves set aside for Zim shares, including for participation in Zim's rights issues held on June 11.
The exercise of the rights increases Israel Corp's stake in Zim from 99.62% to 99.66%.
Israel Corp's share price fell 1.7% in morning trading to NIS 2,220, giving a market cap of NIS 17 billion.
Published by Globes [online], Israel business news - www.globes-online.com - on June 21, 2012
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