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CSAV to raise up to US$600 million to support merger with Hapag Lloyd
HAPAG-LLOYD's prospective merger partner, Compania Sud Americana de Vapores (CSAV) of Chile, says it plans to raise up to US$600 million by selling additional stock to finance ships, and to support the expected merger.
"The price setting mechanism should result in a significantly higher share price," said CSAV chief executive Oscar Hasbun.
"This, combined with the commitment of the controlling shareholder of CSAV to subscribe the total capital increase is a strong proof of its confidence in the company and this operation," Mr Hasbun said.
Subject to shareholder approval, CSAV will raise $200 million at a meeting in March to complete the financing of seven 9,300-TEUers, while a second $400 million tranche would be raised if the merger takes place.
The two companies signed a non-binding memorandum of understanding on January 22 to combine their container businesses. This would merge Hapag, the world's sixth biggest container line with CSAV, ranked 20th.
Chilean conglomerate Quinenco, the controlling shareholder of CSAV, is committed to pick up any remnant unsubscribed shares to complete the $200 million capital increase, reports American Shipper.
Quinenco holds stakes in companies that engage in a wide array of business activities throughout South America, such as banking, financial services, industrial production and food and beverages.
"The price setting mechanism should result in a significantly higher share price," said CSAV chief executive Oscar Hasbun.
"This, combined with the commitment of the controlling shareholder of CSAV to subscribe the total capital increase is a strong proof of its confidence in the company and this operation," Mr Hasbun said.
Subject to shareholder approval, CSAV will raise $200 million at a meeting in March to complete the financing of seven 9,300-TEUers, while a second $400 million tranche would be raised if the merger takes place.
The two companies signed a non-binding memorandum of understanding on January 22 to combine their container businesses. This would merge Hapag, the world's sixth biggest container line with CSAV, ranked 20th.
Chilean conglomerate Quinenco, the controlling shareholder of CSAV, is committed to pick up any remnant unsubscribed shares to complete the $200 million capital increase, reports American Shipper.
Quinenco holds stakes in companies that engage in a wide array of business activities throughout South America, such as banking, financial services, industrial production and food and beverages.
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