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CMA CGM container ship. (Photo: Stock File)
Leading container shipping group seeks capital
(FRANCE, 7/13/2010)
World's third largest container shipping group CMA CGM is looking to receive capital from Qatar’s sovereign wealth fund.
Creditors and possible investors had hoped CMA CGM would finalise negotiations by the start of this week, at the scheduled end of a period of judicial supervision. Such supervision periods are commonplace in France whenever firms negotiate important restructurings.
The Marseilles, France-based operator of Malta Freeport Terminals only needs a few weeks to finish a deal, it said, despite missing the latest of numerous deadlines to come into power of new capital. CMA CGM said all its discussions, which began in September of last year, are well advanced, Financial Times reports.
Many people involved said Qatari Holdings, the investment arm of the Qatar Investment Authority, is still the frontrunner. California-based Colony Capital also remains in talks.
The group is still controlled by founder and CEO Jacques R Saadé, a French businessman of Lebanese descent. A key sticking point is whether his family will keep control of the company.
It is said that Qatari Holdings may take a stake of up to 49 per cent.
On 31 December 2009, consolidated revenue fell by 30 per cent to EUR 7.6 billion for the year, dragged down by a steep cut in freight rates and volumes.
In general, 7.9 million 20-ft equivalent units or containers were transported by the group during that year. This represents a 9 per cent decline that nevertheless outperformed the 12 per cent drop in world container traffic.
The group ran a dramatic cost reduction plan that resulted in almost USD 800 million in savings, without forgoing its potential for future growth.
Last year was one of contrast, the group said, when the improvement in volumes on most of the trades starting in July and CMA CGM's focus on freight rates restoration and cost reduction led to a return to positive EBITDA in the fourth quarter following eight months of severe losses.
This year will also be affected by the delivery of the group's new head office -- the CMA CGM Tower -- which in the autumn will merge nearly 2,000 Marseille staff members now based at seven locations.
Creditors are still anxious that CMA CGM restructures to fund its substantial order book of ships. The group continues to have 40 outstanding ships on order, many of which cost more than USD 100 million each, said Paris-based AXS-Alphaliner.
CMA CGM has 370 vessels plying 150 major shipping routes between 403 ports in 150 countries.
By Natalia Real
[email protected]
www.seafood.media
Information of the company:
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Address:
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4, quai d'Arenc - cedex 02
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City:
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Marseille
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State/ZIP:
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(13235)
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Country:
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France
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Phone:
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+33 488 919 000
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Fax:
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+33 488 919 095
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E-Mail:
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[email protected]
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