FRANCE's sovereign wealth fund, Fonds Strategique
d'Investissement (FSI), has agreed to buy US$150 million in CMA CGM bonds,
convertible into a six per cent equity in the Marseille-based company, reported
London's Container International.
Istanbul-based Yildirim Group, which bought a 20 per cent
stake of the company for $500 million in 2010, has agreed to buy $100 million
of the new convertible bond issue, that would raise its stake another four per
cent of the world's third largest container shipping line.
Said CMA CGM's chairman and CEO Jacques Saade: "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. 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."
Said CMA CGM executive officer Rodolphe Saade: "This
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 French Sovereign Wealth Fund Institute said FSI
"was created to enhance equity and to help stabilise French firms",
according to American Shipper. CMA CGM employs 18,000 people, including 4,300
in France.
After implementing the new selling agreements, the
privately-held CMA CGM, owned by Saade family, will have sold 30 per cent of
the company. With the fresh investment, the carrier has succeeded in enhancing
its credit position by securing a new investment from the state-owned FSI,
which helps the French giant carrier to seek IPO in near term, reported
London's Container International.
Source : HKSG.