CMA CGM Sells Eight Terminals
The CMA CGM Group has announced the first closing of its agreement with China Merchants Port (CMPort), with the sale of its stakes in eight port terminals to Terminal Link.
The Terminal Link joint venture was created in 2013 and is 51 percent owned by CMA CGM and 49 percent by CMPort.
The transaction, first announced in December 2019 is valued at $815 million.
This initial disposal includes the following terminals:
• Odessa Terminal (Ukraine)
• CMA CGM PSA Lion Terminal (CPLT), Singapore
• Kingston Freeport Terminal (Jamaica)
• Rotterdam World Gateway (Netherlands)
• Qingdao Qianwan United Advance Container Terminal (China)
• Vietnam International Container Terminal, Ho Chi Minh City (Vietnam)
• Laem Chabang International Terminal (Thailand)
• Umm Qasr Terminal (Iraq)
The sale of the last two terminals covered by the agreement between CMA CGM and CMPort is expected to be completed by the end of first-half 2020 for an all-cash consideration of over $150 million, pending approval by the competent regulatory agencies.
With this transaction, CMA CGM is proceeding with the delivery of its $2.1 billion liquidity plan announced in November 2019. This plan, among others, reduces CMA CGM consolidated debt by more than $1.3 billion by the end of first-half 2020.
The CMA CGM Group says it is strengthening its balance sheet amidst the high uncertainty created by the global Covid-19 health crisis. While the crisis has had a limited impact in the first quarter of 2020, the Group expects a decline in volumes, particularly outbound to Europe and the U.S.
Rodolphe Saadé, Chairman and Chief Executive Officer of the CMA CGM Group, said: “Amid the high uncertainty created by the COVID-19 health crisis, the closing of this transaction as previously announced demonstrates the resilience of the CMA CGM Group.”