Hapag-Lloyd sells stake in terminal to raise cash

Hapag-Lloyd sells stake in terminal to raise cash    Hapag-Lloyd shareholders have agreed to form a special purpose company to buy the German container carrier’s stake in Container-Terminal Altenwerder for 315 million euro, ($446 million) as part of a plan to support it during the current shipping downturn.
   In addition, HSH Nordbank will contribute 15 million euros ($21 million) to the carrier in the form of a loan, though it will not acquire a stake in the special-purpose company.
   The terminal, considered to be one of the most modern in the world, is located in the Altenwerder quarter of Hamburg. Hapag-Lloyd owns 25.1 percent of the facility, with the remainder owned by German logistics company Hamburger Hafen und Logistik AG (HHLA), the main terminal operator in the city.
   Hapag-Lloyd’s share in the terminal will be purchased by a company to be founded by TUI AG, which owns 43.33 percent of Hapag-Lloyd, and two of the members of the Albert Ballin group that own the rest of Hapag-Lloyd’s stock. Those two members are the city of Hamburg’s investment and holding company, HGV Hamburger Gesellschaft fur Vermogens- und Beteiligungsmanagement mbH, and insurance company Signal Iduna.
   “The plans envisage that Hapag-Lloyd will repurchase its share in the CTA as soon as the economic situation permits,” said TUI in a press release.
   The companies are working to raise additional funds to support Hapag-Lloyd.
   “The Hapag-Lloyd AG shareholders have agreed in principle to reach a decision over the next few weeks as regards the announced capital and financing measures, which are intended to support the shipping company over the long term. These measures form the basis for applications for government guarantees,” said a press release from TUI.
   Hapag-Lloyd is also seeking to renegotiate agreements with ship owners from which it charters ships.
   TUI said the presiding committee of its supervisory board “has satisfied themselves of the future viability of Hapag-Lloyd on the basis of the interim opinion prepared by management consultants Roland Berger.
   “The restructuring and cost reduction measures which have been initiated and in some cases already implemented by the Hapag-Lloyd management are beginning to take effect,” it added. “TUI AG is convinced that following execution of the announced capital measures, the shipping company will emerge stronger from the crisis and that it will be possible over the medium term to realize the substantial value that are involved in this stakeholding.” ' Chris Dupin