CSAV starts pre-emptive rights period for capital increase

Compania Sud Americana de Vapores (CSAV) has opened the pre-emptive right period for its capital increase from 20 August and it will extend to 18 September.
This is part of a $500m capital raising process approved last April by shareholder, for which CSAV will place 6,750m shares. A price of $0.0488 per share was set for the capital increase. This price was set based on the average share price for 19 August, the last business day prior to the pre-emptive right period.
Based on the number of shares issued, the company expects to collect funds for approximately $330m. The board of CSAV will therefore evaluate the possibility of calling for an additional capital increase to complete the increase $500m originally approved in April.
The placement of new shares will enable CSAV to continue with its investment plan, consisting of the purchase of seven new 9,300 teu vessels. These will be delivered as the end of 2014 and will permit the replacement of ships currently chartered by the company.
With this acquisition, CSAV will align its percentage of own fleet with the industry average, much higher than the 8% it had at the beginning of 2011. The capitalisation will also be used to repay the company’s debt from Banco Latinoamericano de Comercio Exterior S.A. (BLADEX) and inject additional cash for its development plans.
Source: Seatrade Global