The Chilean shipping company CSAV said its shareholders approved a capital increase of $400 million on Friday in the context of a merger of its containership with Germany's Hapag-Lloyd.
The proceeds will be used mainly to subscribe the amount committed by CSAV in the first capital increase of Hapag-Lloyd following the merger — 259 million euros ($342 million), which is equivalent to 70 percent of the total that the German company is seeking in this capitalization. This will enable the Chilean firm to increase its shareholding in Hapag-Lloyd from 30 percent to 34 percent. The balance will be used to cover the operation’s closing expenses.
The meeting established that the capitalization will be carried out once the transaction between the two companies is closed, which is subject to the approval of a series of regulatory authorities around the world. It was also agreed that the board will be responsible for setting the share price.
Oscar Hasbun, the chief executive officer of CSAV, said his company has "a reasonable expectation that we will be able to obtain the necessary approvals from regulatory authorities this year, and we will be able to close the merger within the expected" time frame.
CSAV also said that Hapag-Lloyd’s management board, including its CEO, Rolf Habben Jansen, visited CSAV’s offices in Chile. Combined, the two companies will have annual sales of about $12 million, move 7.5 million TEU annually, and be the fourth-largest container shipping company.