French liner to sell big assets to China Merchants Port Holdings
French shipping line CMA CGM has stated it will raise US$2 billion in order to finance its takeover of CEVA Logistics, with up to half the figure stemming from selling port assets to its joint venture with China Merchants Port Holdings Co.
CMA CGM is the world's fourth-largest container shipping company and bought CEVA earlier in 2019, however, now it is becoming clear how the French company seeks to finance the deal.
According to industry reports, CMA CGM is going to sell its stakes in up to ten port terminals to China Merchants, building a collated $968 million.
CMA CGM is also in a joint venture (JV) with China Merchants called ‘Terminal Link’.
CMA CGM holds a 51% stake in the JV.
The rest of the cash is expected to come from the sale and leaseback of some ships ($860 million) with another $93 million coming from selling its logistics platform in India.
"We have a lot of assets and we use them fully," a CMA CGM representative said.
CMA CGM reported a net profit of $45.4 million in Q3, stemming the tide of previous losses.
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