HMM to Buy Algeciras Terminal Stake for USD 104 Mn

0
107
  • As Navios Containers Eyes USD 75 Mn for Rickmers Fleet

South Korean shipping giant Hyundai Merchant Marine (HMM) has reached an agreement to buy a 100 percent stake in Spain’s Total Terminal International Algeciras (TTIA).

Under the deal, which will be officially signed on May 15, the company will pay KRW 117.6 billion (USD 104.1 million) for the stake in the terminal, situated at Port of Algeciras Bay. According to the company’s stock exchange release, the acquisition is expected to be wrapped up withing four months of the contract signing.

HMM was selected as the preferred bidder for the terminal, owned by its bankrupt compatriot Hanjin Shipping, in late November 2016. The company earlier expected to finalize the transaction by the end of 2016.

TTI Algeciras counts with a concession area of 300,119 square metres, 57,621 square metres of public manoeuvring zone and two quay lines of 850 metres on the East and 550 metres on the North, with a draught of 18,5 and 17,5 metres, respectively.

The terminal is capable of handling ultra large container vessels (ULCVs) with an equipment of 8 ship-to-shore cranes, 32 automatic stacking cranes and 22 shuttle carriers.

In the meantime, Navios Maritime Containers, a newly formed Marshall Islands company, has agreed to sell some 15 million of its shares to finance the purchase of a 14-vessel container fleet from Rickmers Maritime and further vessel acquisitions.

The company is looking to secure up to USD 75 million of gross proceeds through the share sale at a subscription price of USD 5 per share. The offering is expected to close in full on or about June 1, 2017.

The acquisition of Rickmers Maritime’s vessels was earlier agreed by Navios Maritime Partners L.P. The company said that it would invest USD 30 million and receive 40% of the equity, and Navios Maritime Holdings would invest USD 5 million and receive 6.67% of the equity of Navios Containers.

Each of Navios Partners and Navios Holdings will also receive warrants, with a five-year term, for 6.8% and 1.7% of the equity, respectively.

Rickmers Maritime’s containerships are expected to be delivered starting the week of May 15, 2017. The acquisition is subject to a number of conditions, and “no assurance can be provided that the acquisition will close at all or in part,” according to Navios Containers.

Additionally, Navios Containers said that it intends to file an application to register on the Norwegian Over-The-Counter market (N-OTC), where it expects to be registered on or about June 1, 2017.

World Maritime News 

LEAVE A REPLY

Please enter your comment!
Please enter your name here