China Merchants Port Holdings Company Limited (CMPort) entered into a Memorandum Of Agreement (MOA) with CMA CGM, according to which Terminal Link SAS (Terminal Link) will acquire a portfolio of participations in 10 terminals located in Asia, Europe, Middle-East and the Caribbean currently owned by CMA CGM for a total consideration of US$955million.
Pursuant to the MOA and in order to finance the proposed acquisition by Terminal Link, CMPort will subscribe for Mandatory Convertible Bonds (MCB) in an amount up to US$468 million. It will also grant a secured term loan facility of a principal amount of up to US$500 million with a maturity of 8 years, issued by and to Terminal Link for a total amount of up to US$968 million. The interest and principal under The Loan Facility will be funded primarily by the way of share capital increase of Terminal Link subscribed by CMA CGM.
[smlsubform prepend=”GET THE SAFETY4SEA IN YOUR INBOX!” showname=false emailtxt=”” emailholder=”Enter your email address” showsubmit=true submittxt=”Submit” jsthanks=false thankyou=”Thank you for subscribing to our mailing list”]
In line with the successful partnership initiated in 2013, the Proposed Acquisition constitutes a unique opportunity to expand Terminal Link’s network and gain exposure to a sizeable portfolio of terminals located in regions with strong growth prospects.
With the Proposed Acquisition, CMPort aims to enhance or gain presence to various regions covering Asia, Europe, Middle-East and the Caribbean, each of which with their respective strengths and growth possibilities.
What is more, aspires to strengthen the partnership between CMPort and CMA CGM in operating and developing container terminals on a global basis and extending their relationships as business partners.
CMPort believes that Terminal Link’s exposure to terminals in emerging and developed markets and its potential pipeline of new projects present another driver for its volume growth and financial returns in the future
CMPort said.
