CMPort and CMA CGM have entered into a MOA to reinforce their strategic partnership and support Terminal Link in the expansion of its assets portfolio in order to enhance growth potential to CMPort

Publisher:

Number:995

Release time:2019-11-25

size:TTT

Return

 CMPort and CMA CGM have entered into a MOA to reinforce their strategic partnership and support Terminal Link in the expansion of its assets portfolio in order to enhance growth potential to CMPort

 

On 25 November 2019, China Merchants Port Holdings Company Limited (“CMPort” or “The Company”, HKSE Code: 00144) is pleased to announce it entered into a comprehensive Memorandum Of Agreement (“MOA”) with CMA CGM SA (“CMA CGM”), pursuant to which Terminal Link SAS (“Terminal Link”) will acquire a portfolio of participations in 10 terminals located in Asia, Europe,  Middle-East and the Caribbean (the “Terminals Portfolio”) currently owned by CMA CGM for a total consideration of US$955million.

Pursuant to the MOA and in order to finance the proposed acquisition by Terminal Link (the “Proposed Acquisition”), CMPort will subscribe for a US Dollar-denominated Mandatory Convertible Bonds (“MCB”) in an amount up to US$468 million; and will grant a secured term loan facility (“Loan Facility”) of a principal amount of up to US$500 million with a maturity of 8 years, issued by and to Terminal Link for a total amount of up to US$968 million. The interest and principal under The Loan Facility will be funded primarily by the way of share capital increase of Terminal Link subscribed by CMA CGM.

In line with the successful partnership initiated in 2013, the  Proposed Acquisition constitutes a unique opportunity to expand Terminal Link’s network and gain exposure to a sizeable portfolio of terminals located in regions with strong growth prospects.

CMPort has been actively exploring and acting on acquisition opportunities overseas as a pertinent mean to effectively add new growth drivers to its existing and sustainably growing ports business. With the Proposed Acquisition, CMPort will be able to enhance or gain presence to a mix of regions covering Asia, Europe,  Middle-East and the Caribbean, each of which with their respective strengths and growth potential.

In addition, this significant transaction is another cornerstone of a mutually, highly beneficial strategic partnership between CMPort and CMA CGM in operating and developing container terminals on a global basis and extending their relationships as business partners. CMPort believes that Terminal Link’s exposure to terminals in emerging and developed markets and its potential pipeline of new projects present another driver for its volume growth and financial returns in the future.

Important Notice:

The comprehensive MOA reflects the agreement reached on all the main terms and conditions of the Proposed Transaction and CMPort and CMA CGM will work together to  finalise negotiations and agree on the definitive terms of the formal agreements to be entered into as soon as possible. Notwithstanding the MOA is specified to be legally binding, there is also no obligation on the parties to enter into the formal agreements if they fail to reach agreement on the formal agreements. Shareholders and potential investors of the Company are advised to exercise caution when dealing in the shares of the Company.

About CMPort

CMPort was listed on the Hong Kong Stock Exchange in 1992 as the first mainland red chip enterprise to be listed in Hong Kong. CMPort is the World’s leading port developer, investor and operator, with a comprehensive ports network portfolio spanning six continents and 18 countries and regions. CMPort’s vision is “to be a world’s leading comprehensive port service provider”.

About CMA CGM

CMA CGM’s principal business activity is container shipping. CMA CGM is the world’s fourth largest container shipping group. CMA CGM also invests in shipping terminals of some of the world’s major ports. CMA CGM has recently bought Ceva Logistics, a top player in contract logistics and freight management.

About Terminal Link

Terminal Link’s principal business activity is the provision of marine terminal services. CMPort acquired 49% equity interest in Terminal Link for 400 million Euro in 2013, and CMA CGM maintain 51% equity interest in Terminal Link. As at the date of this announcement, Terminal Link owns various levels of equity interests in 13 Terminals located in eight countries across four major continents: France, Morocco, Malta, the United States, the Republic of Cote d’Ivoire, Belgium, Greece and South Korea.