CSAV shareholders, opposing Hapag Lloyd merger have one month to decide
COMPANIA Sud Americana de Vapores (CSAV) shareholders opposed to merging the Chilean company's container activities with Germany's Hapag-Lloyd have a month to decide whether to block the deal.
This comes after 84.5 per cent of CSAV's shareholders voted for the merger and creating the world's biggest container line at an extraordinary shareholders meeting held in Valparaiso on March 21.
Those opposed to the merger have until April 20 to exercise the appraisal rights, reported Lloyd's List.
The merger requires 95 per cent support from shareholders in order to progress.
In January, both companies signed a non-binding memorandum of understanding establishing that, should the merger be completed, CSAV would receive 30 per cent of the combined company.
There will be an initial capital raising of EUR370 million (US$506 million), to which CSAV must subscribe EUR259 million within 100 days of conclusion of the transaction.
A further EUR370 million will be raised within one year as part of a listing of Hapag-Lloyd, a declared aim of TUI, holder of 22 per cent of the company.
The new company would have a combined carrying capacity of one million TEU, transported volume of 7.5 million TEU per year and combined sales of $12 billion annually on cost savings of $300 million a year, according to CSAV.
