Vapores, Hapag-Lloyd make deal, plan €740m capital raise

Chilean shipping firm Compania Sud Americana de Vapores (CSAV) is set to consult shareholders on a capital raise after agreeing to take a 30% stake in Hapag-Lloyd under a non-binding agreement announced on Wednesday. The pair plans to raise €740m ($1bn) of capital in two transactions. CSAV will subscribe €259m of the first capital raise, to be executed within 100 days of the agreement being finalized, which will give it a stake of close to 34% in the German shipper. The Chilean firm said it was looking at calling a shareholders’ meeting to raise cash to subscribe to the Hapag deal, as well as for $200m to buy seven new container ships. CSAV, which will become Hapag’s largest shareholder, will sign a control agreement with Hapag’s other owners. The new entity will be the world’s fourth-largest shipper with combined annual revenues of close to $12bn. The memorandum of understanding between the two firms is preliminary, and subject to due diligence and regulatory approval.