The Jacques Saade-led containership gianton Tuesday confirmed reports that the French sovereign wealth fund Fonds Strategique d’Investissement (FSI) isbacking a $150m infusion in exchange for a 6% stake, a figure first quoted byTradeWinds two weeks ago.
The other $100m will come from one ofits existing patrons, the Yildirim Group, which is subscribing to redeemable bondsthat will give the diversified Turkish investment group another 4% slice whenthe units are converted into shares.
Ina note to clients the company’s chairman and CEO, applauded the deal and said itcoincides with the group’s “return to profitability in the second quarter andthe expectation of an even better operating performance in the third quarter,leading to a profit for the full year.”
"This agreement will help to strengthenthe group’s balance sheet and allow us to accelerate the implementation of CMACGM’s strategy to prepare for an IPO in the coming years,” added Rodolphe Saade,"the carrier’s executive officer.
Market insiders claim the investment should lay the foundation for the restructuring of some$4bn in debt as it is widely believed that the overhaul is contingent on a cashinfusion from outside backers.
It’s difficult to determine how many counterparties have a vested interestin CMA CGM’s financial stability but as the world’s third largest liner groupit’s not difficult to understand why the market has anxiously awaited news about thelifeline for some time.
As we have reported, the carrier is looking to restructure loans on debtdue in 2013 and 2014 and to amend certain covenants agreed in 2010, the yearYildirim paid $500m in return for a 20% stake.
CMA CGM is headquartered in Marseille where it overseesa fleet of approximately 394 boxships. In 2011 it transported more than 10 million teu. Thatsame year, it boasted some 18,000 employees and a network of650 agencies and offices.
