Hapag-Lloyd to acquire CP Ships

TUI AG, Hapag-Lloyd's parent company, announces that it has agreed to acquire CP Ships Limited, a leading Canadian container shipping company, in an all-cash transaction for 1.7 billion euros (US$2.0 billion), or US$21.50 per share.

As of 30 June 2005, net debt of CP Ships was 261 million euros (US$316 million). Pursuant to the terms of a support agreement between the companies, the Board of Directors of CP Ships has unanimously recommended that shareholders of CP Ships accept the offer.

The offer price represents a premium of 24.9% over CP Ships' volume-weighted average closing price of the last three months, and 9.7% over CP Ships?closing share price on August 19, 2005, the last business day before the offer was announced.

The acquisition of CP Ships will accelerate the growth of Hapag-Lloyd, TUI? container shipping business. The combined company will be a top five player, based on capacity, in the worldwide container shipping market and an important service provider across the North Atlantic.

It will also offer stronger coverage in the Far Eastern, Australasian and South American trade lanes. In addition, Hapag-Lloyd believes its significantly increased size and presence in the world? shipping lanes will increase its attractiveness to partners in alliances.