GRUPO TMM SELLS STAKES IN MEXICAN PORTS TO SSA TO LOWER DEBTS
Grupo TMM, S.A., the Mexican rail, port and logistics company, announced the sale of a 51-percent stake in TMM Ports and Terminals as it struggles to meet the repayment of debts.
Grupo TMM will sell the 51-percent share in its port division for $120 million to an affiliate of Stevedoring Services of America, subject to Stevedoring Services of America receiving sufficient financing and other customary closing conditions.
Grupo TMM said that the proceeds of the sale will be used to reduce debts, but it warned that they will not be sufficient to repay in full the company’s 9 1/2 percent notes due May 15.
“Grupo TMM is continuing discussions regarding other potential asset sales or investments in the company to provide additional liquidity,” a spokesman said. The company warned that there is no assurance that it will be able to complete any such asset sales, nor that the proceeds from any asset sales or investments will be sufficient to meet its obligations.
The activities of the TMM Ports and Terminals division partly sold to Stevedoring Services of America include the operations at the Mexican ports of Manzanillo, Cozumel, Veracruz and Progreso. Grupo TMM will retain its interest in the ports of Acapulco and Tuxpan.
Grupo TMM said that it expects to close the transaction in early May.
Headquartered in Mexico City, Grupo TMM is Latin America’s largest multimodal transportation company. It has a significant interest in Transportacion Ferroviaria Mexicana, which operates Mexico’s Northeast railway and carries over 40 percent of the country’s rail cargo.