The world's third-largest container carrier, CMA CGM said founder Jacques Saad' would step down and be replaced by Philippe Souli', chief executive officer of French conglomerate Constructions Industrielles de la Mediterranee (CNIM). Saade will remain as chairman of the company.
In addition, two additional independent members, Denis Ranque and Christian Garin, have been named to the company’s board of directors. Ranque is the former head of the French defense and electronics comapny Thales. Garin is chairman of the French Shipowners Association.
The loan “will enable the group to pursue the current talks regarding its debt restructuring and a capital increase planned for the second half of 2010 with the arrival of new investors,” the company said.
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The management appointments are expected to give lenders more visibility into the family-owned company.
A CMA CGM spokesman said the company had indicated about a month ago that it might seek to raise $300 million to $400 million in a private offering from investors to increase capital. He said he did not know if that amount has been modified since that time. As a private company, CMA CGM does not make regular public financial disclosures, but several months ago it indicated that its total debt was about $5.6 billion, he added.
CMA CGM has been one of the fastest growing container shipping companies in recent years and has an aggressive newbuilding program. Today it has a fleet of 354 ships with 1.02 million TEUs of capacity with 59 ships of 497,512 TEUs on order or 48.6 percent of its current fleet, according to the information service AXS-Alphaliner.
CMA CGM said it has called an extraordinary shareholders meeting on Dec. 23 to approve changes in the company's legal structure with the creation of a board of directors chaired by Saad'. This board would include Pierre Bellon and Tristan Vieljeux, as well as the new independent members Ranque and Garin.
Following the approval of the reinforced organization, Saad' will propose to the board the appointment of Souli' as CEO and Farid Salem, Rodolphe Saad' and Jean-Yves Schapiro as chief operating officers.
'With this agreement, our financial partners are sending a strong message and affirming their confidence in the group,” said Jacques Saad'. “Our strategy to return to profitable growth is therefore proven to be valid. With the arrival of Philippe Souli' as CEO and experienced and independent board members, the group now has the resources as well as a strong team in place to build on this new dynamic.' ' Chris Dupin
