CMA CGM said Tuesday
the French Government's sovereign wealth fund, Fonds Stratégique d’Investissement (FSI), has agreed to subscribe into $150 million in bonds which are convertible into a 6 percent stake in CMA CGM.
CMA CGM, the third largest container shipping company in the world, also said Yildirim Group will subscribe to $100 million in bonds, convertible into a 4 percent stake in CMA CGM upon conversion.
“We are very pleased to have reached an agreement with the FSI and of the Yildirim Group's renewed support. This agreement is an important milestone for our group and demonstrates FSI and Yildirim’s level of confidence in its future," said Jacques R. Saadé, CMA CGM’s chairman and chief executive officer, in a statement. "It coincides with our group’s return to profitability in the second quarter and the expectation of an even better operating performance in the third quarter, leading to a profit for the full year.”
Rodolphe Saadé, CMA CGM’s executive officer, said the agreement "will help to strengthen the group’s balance sheet and allow us to accelerate the implementation of CMA CGM’s strategy to prepare for an IPO in the coming years. I am delighted that the FSI will invest in our Group and support its on-going development.”
The Yildrim Group already holds a 20 percent stake in CMA CGM, meaning privately-held CMA CGM will have surrendered 30 percent of the company to outside parties. The group has debts of more than $5 billion.
FSI noted CMA CGM employs 18,000 people, including 4,300 in France.
The Sovereign Wealth Fund Institute
says FSI was "was created to enhance equity and to help stabilize French firms." - Chris Dupin