Financial News
Written by: Zhang Weilun
2019-11-26 08:30
Last updated: 2019-11-26 08:30China Merchants Port (0144) and CMA CGM entered into a comprehensive memorandum of agreement to finance the acquisition of the 10 terminal portfolio interests currently owned by CMA CGM and its affiliates from the joint venture company Terminal Link. China Merchants will subscribe for compulsory convertible bonds issued by Terminal Link and grant loans to a total of up to US $ 968 million (7.55 billion yuan).
China Merchants pointed out that Terminal Link intends to acquire the interests of 10 terminal portfolios from CMA CGM and its affiliates for a total consideration of US $ 955 million (7.449 billion yuan). The company financed the acquisition of Terminal Link.
Terminal Link issues 468 million US dollars of compulsory convertible bonds to China Merchants with a coupon rate of 6%, and the company provides up to 500 million US dollars to the other party for 8 years of secured term loan financing at an annual interest rate of 6% . When the loan expires, the shares issued by Terminal Link will be subscribed by CMA CGM, and the funds obtained will be paid. At that time, the mandatory convertible bonds held by China Merchants will be converted into Terminal Link shares.
After repaying the loan and converting the convertible debt, the shareholdings of CMA CGM and China Merchants in Terminal Link will remain at 51% and 49%, respectively.
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