Sale of 8 Port Terminals: CMA CGM completes First Transaction

first_imgWith this transaction, CMA CGM is proceeding with thedelivery of its USD 2.1 billion liquidity plan announced on 25 th November2019. This plan among others reduces CMA CGM consolidated debt by more than USD1.3 billion by the end of first-half 2020 and allows to extend certainfinancing facilities maturing during the year. This initial disposalincludes the following terminals: Sea News, March 27 The CMA CGM Groupreduces its debt and is proceeding with its liquidity plan The CMA CGM Group reduces its debt andimmediately increases its liquidityCMA CGM delivers on its USD 2.1 billionliquidity plan announced on 25th November 2019The CMA CGM Group strengthens its balance sheetamidst the high uncertainty created by the global Covid-19 health crisis “This transaction, announced on the 20th of December 2019,is an important step in its 2.1 billion USD liquidity plan and will allow us tostrengthen our balance sheet. Amid the high uncertainty created by the COVID-19health crisis, the closing of this transaction as previously announceddemonstrates the resilience of the CMA CGM Group.” In line with the terms and conditions of the agreementannounced on 20th December 2019 this first transaction represents a totalall-cash consideration of USD 815 million. It will enable Terminal Link toexpand its geographic footprint and global network, thereby enhancing itsbusiness development prospects. The sale of the last two terminals covered by the agreementbetween CMA CGM and CMP should be completed by the end of first-half 2020 foran all-cash consideration over USD 150 million, pending approval by thecompetent regulatory agencies. The CMA CGM Group, a world leader in shipping and logistics,announces today 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 and49% by CMP.center_img (Image Courtesy: CMA CGM) The Group strengthensits balance sheet in the midst of the global health crisis Rodolphe Saadé,Chairman and Chief Executive Officer of the CMA CGM Group, stated: The CMA CGM Group strengthens its balance sheet amidst thehigh uncertainty created by the global Covid-19 health crisis. While the crisishas had a limited impact in the first quarter of 2020, the Group expects adecline in volumes, particularly outbound to Europe and the United States. Author: Baibhav Mishra Odessa Terminal (Ukraine)CMA CGM PSA Lion Terminal (CPLT), SingaporeKingston Freeport Terminal (Jamaica)Rotterdam World Gateway (Netherlands)Qingdao Qianwan United Advance ContainerTerminal (China)Vietnam International Container Terminal, Ho ChiMinh City (Vietnam)Laem Chabang International Terminal (Thailand)Umm Qasr Terminal (Iraq) CMA CGM completes a first transaction relating to the sale of eight port terminals to Terminal Link for USD 815 million in cashlast_img