December 26, 2019: In an attempt to reduce the debt burden, CMA CGM has finalised the terms of its sale of 10 terminals.
The French carrier said would receive $968 million in cash for the transfer of 10 facilities owned by the line to Terminal Link, a joint-venture in which it holds 51 percent and Chinese port operator China Merchants the remaining stake.
The carrier has strategic stakes in the box terminals - Odessa in Ukraine; the CMA CGM PSA Lion Terminal in Singapore; Mundra in India; Jamaica’s Kingston Freeport; Rotterdam World Gateway; Gemalink at Cai Mep in Vietnam; Qingdao Qianwan United Advance Container Terminal in China; Vietnam International Container Terminal in Ho Chi Minh City; Laem Chabang International Terminal in Thailand; and the Iraqi gateway of Umm Qasr.
CMA CGM said, “The sale is part of the plan announced on November 25, 2019, whereby the group intends to reduce its debt and increase its liquidity. Through the various planned transactions, the group expects to raise more than $2 billion in additional cash by mid-2020, while extending its debt maturities and reducing its debt by more than $1.3 billion.”
When its third-quarter results were announced in late November, the carrier revealed it had drawn up a series of other measures to further reduce debt, which included raising $860 million from the sale and leaseback of vessels, although it has yet to specify the ships involved or the contracting parties.
Meanwhile, PSA India Intermodal Pte has acquired a 50 percent stake for $93 million in an Indian logistics hub from CMA CGM and the latter is also hoping to raise a $100 million from customer receivables, a form of invoice factoring, relating to CEVA customers.