CMA CGM signs a binding agreement for the sale of a 90% equity interest

CMA CGM (the “Group”) signed an agreement with EQT Infrastructure III (“EQT Infrastructure”) and its partner P5 Infrastructure (“P5”) on June 30th 2017, pursuant to which EQT Infrastructure will acquire a 90% interest in the Global Gateway South (“GGS”) terminal in Los Angeles (USA) for an Enterprise Value of USD 875 million.

Following the completion of the transaction, CMA CGM will remain a minority shareholder holding 10% of the GGS terminal, which it acquired last year as part of Neptune Orient Lines (NOL).

CMA CGM will receive a cash consideration of $817 million to be paid at closing. Transaction terms also provide for the Group to receive additional deferred, contingent cash consideration of which sequence and quantum will depend on GGS’ future operating and financial performance.

CMA CGM and its subsidiaries entered into a long-term industrial partnership and utilization agreement with EQT Infrastructure and P5, allowing the Group to remain a major user of the terminal with preferential conditions. GGS is a key asset in delivering a high quality of service in the USA to CMA CGM’s customers.

The disposal of GGS enables CMA CGM to complete the financial deleveraging plan communicated in December 2015 upon announcement of the NOL’s acquisition. The transaction is fully in line with CMA CGM’s strategy to focus on its shipping business while securing its operations through shared ownership of key terminals.

Closing of the transaction is subject to anti-trust and regulatory approvals, including clearance from the Committee on Foreign Investment in the United States (CFIUS), and is expected to occur by end of 2017. BNP Paribas and HSBC acted as financial advisors and Willkie Farr & Gallagher acted as legal advisor to CMA CGM.

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