The CMA CGM Group has announced the first closing of its agreement with China Merchants Port (CMP), with the sale of its stakes in eight port terminals to Terminal Link. Terminal Link joint venture was created in 2013 and is 51% owned by CMA CGM and 49% by CMP.
In line with the terms and conditions of the agreement announced on December 20, 2019, this first transaction represents a total all-cash consideration of $815m. Through the agreement, Terminal Link hopes to expand its geographic footprint and global network, thereby enhancing its business development prospects.
This initial disposal includes the following terminals:
The sale of the last two terminals covered by the agreement between CMA CGM and CMP is aimed be completed by the end of first-half 2020 for an all-cash consideration over $150m and is pending approval by the regulatory agencies.
With this transaction, CMA CGM proceeds with the delivery of its $2.1bn liquidity plan announced on November 25, 2019. The plan helps in reducing CMA CGM consolidated debt by more than $1.3bn by the end of first-half 2020.
The CMA CGM Group has strengthened its balance sheet amidst the uncertainty created by the global COVID-19 health crisis. While the crisis had a limited impact in the first quarter of 2020, the group expects a decline in volumes, particularly outbound to Europe and the United States.
Source: CMA CGM
