The CMA CGM Group has announced that it has signed an agreement with China Merchants Port (CMP) to sell a portfolio of stakes in ten port terminals to Terminal Link, the joint venture set up in 2013 and owned 51% by CMA CGM and 49% by CMP. The agreement confirms the terms of the transaction announced on 25 November 2019, including a $968m cash payment.
According to CMA CGM, the transaction will enable Terminal Link to broaden its geographic footprint with the acquisition of equity stakes in ten additional terminals and include Odessa Terminal in Ukraine; CMA CGM PSA Lion Terminal in SIngapore; Mudra Terminal in India; Kingston Freeport Terminal in Jamaica; Rotterdam World Gateway in the Netherlands; Gemalink in Cai Mep, Vietnam; Qingdao Qianwan United Advance Container Terminal in China; Vietnam International Container Terminal in Ho Chi Minh City, Vietnam; Laem Chabang International Terminal in Thailand; and Umm Qasr Terminal in Iraq
The transaction is expected to close in Spring 2020, pending approval by relevant authorities.
The sale is part of the plan announced on 25 November 2019, whereby the Group intends to reduce its debt and increase its liquidity. The CMA CGM Group said that it expects to raise more than $2bn in additional cash by mid-2020, while extending its debt maturities and reducing its debt by more than $1.3bn.
Source: CMA CGM
