CSAV said it plans to raise up to $600 million by selling additional stock capital in order to finance ships and complete its proposed merger with Hapag-Lloyd.
The company said that, subject to approval by shareholders at a special meeting in March, it would raise $200 million to complete the finance of seven 9,300-TEU ships. The second $400 million would only be raised if the merger of CSAV's container ship business with Hapag-Lloyd materializes. On Jan. 22, the two companies signed a non-binding memorandum of understanding for the combination of their container businesses.
Quiñenco, the controlling shareholder of CSAV, is committed to pick up any remnant unsubscribed shares to complete the $200 million capital increase.
CSAV’s chief executive officer, Oscar Hasbún, explained that a mechanism for pricing the stock "should result in a significantly higher share price than the current one. This, combined to the commitment of the controlling shareholder of CSAV to subscribe, if necessary, the total capital increase is a strong proof of its confidence in the company and this operation."
Proceeds from the $400-million stock sale would be used to subscribe the amount committed by CSAV in Hapag Lloyd’s €370 million capital increase and to cover closing expenses.