CMA CGM to sell ten port terminals to Terminal Link

CMA CGM at Trieste

CMA CGM has signed an agreement with China Merchants Port to sell a portfolio of stakes in ten port terminals to Terminal Link, their 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, particularly the consideration of $968 million, payable in cash at closing. The November announcement looks to reduce the Group’s debt and increase its liquidity.

The transaction is expected to close in Spring 2020, pending approval by antitrust authorities and the relevant regulatory bodies.

The sale of the ten port terminals well Terminal Link to broaden its geographic footprint and reinforce its growth potential.

The terminals include: Odessa Terminal (Ukraine); CMA CGM PSA Lion Terminal (CPLT) (Singapore); Mundra Terminal (India); Kingston Freeport Terminal (Jamaica); Rotterdam World Gateway (Netherlands); Gemalink (Cai Mep, Vietnam); Qingdao Qianwan United Advance Container Terminal (China); Vietnam International Container Terminal (Ho Chi Minh City, Vietnam); Laem Chabang International Terminal (Thailand); and Umm Qasr Terminal (Iraq).

Through the various planned transactions, the CMA CGM Group expects to raise more than $2 billion in additional cash by mid-2020, while extending its debt maturities and reducing its debt by more than $1.3 billion.

porttechnology.org

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