[110414.EN.SEA] CSAV Shareholders Vote Yes For Hapag-Lloyd Box Shipping Merger

CHILEAN shipping firm Compania Sud Americana de Vapores (CSAV) shareholders have voted 84.5 per cent to merge with German shipping line Hapag-Lloyd. 

During an extraordinary meeting held in the port city of Valparaiso shareholders voted in favour of creating effectively the fourth largest box shipping company in the world.

"Once again our investors have shown their support for the project that we are promoting, and their confidence in the operation we are undertaking," CSAV general manager Oscar Hasbun said in a company statement.

"This is reflected in the fact less than one per cent of shareholders voted against the transaction."

"We expect that on April 20 their withdrawal rights will be confirmed for less than five per cent of shares, and that therefore, the negotiation with Hapag Lloyd will be able to take its course," Mr Hasbin said.

During the meeting, shareholders also approved the implementation of a US$200 million capital increase to finance the acquisition of seven new 9,300-TEU containerships, said an online report on freshfruitportal.com

The ships are to be built by Korea's Samsung Heavy Industries (SHI) and are expected to be delivered to CSAV at the end of the year to replace ships currently on charter.

CSAV's losses in 2013 shrank to $169 million from $314 million in 2012 on operating revenues of $3.2 billion, down from $3.4 billion the previous year. 

Source : HKSG.