DGAP-News: Hapag-Lloyd and CSAV agree to merge and create the fourth largest container shipping company

| Source: EQS Group AG
DGAP-News: HAPAG - LLOYD AG / Key word(s): Mergers & Acquisitions
Hapag-Lloyd and CSAV agree to merge and create the fourth largest
container shipping company

16.04.2014 / 20:31


Hamburg, 16 April 2014

Hapag-Lloyd and CSAV agree to merge and create the fourth largest container
shipping company

Binding agreement signed / In return for contributing its container
business, CSAV becomes new core shareholder of Hapag-Lloyd / Hapag-Lloyd
becomes the world's fourth-largest liner shipping company

Hapag-Lloyd AG and Compañía Sud Americana de Vapores (CSAV) today signed a
binding contract on merging CSAV's entire container business with
Hapag-Lloyd, subject to the necessary approvals. Following the integration,
the new Hapag-Lloyd will rank among the four largest liner shipping
companies in the world, with some 200 vessels with total transport capacity
of around one million TEU, an annual transport volume of 7.5 million TEU
and a combined turnover of 9 billion Euro. The company's head office will
remain in Hamburg. In addition, Hapag-Lloyd will have a strong regional
office in Chile for its Latin America business.

In return for contributing its container business, CSAV will become a new
Hapag-Lloyd core shareholder besides HGV (City of Hamburg) and Kühne
Maritime. CSAV will initially hold a 30% stake in the combined entity. The
partners have agreed on a capital increase of EUR 370 million once the
transaction has been concluded, to which CSAV will contribute EUR 259
million. This will then increase CSAV's share of Hapag-Lloyd to 34%. A
second capital increase of EUR 370 million will be linked to Hapag-Lloyd's
planned stock exchange listing.

"I am delighted that we have succeeded in concluding this partnership
through which our two companies are playing an active part in consolidating
the liner shipping industry. This day is an important milestone in the
history of Hapag-Lloyd," said Michael Behrendt, Chairman of the Executive
Board of Hapag-Lloyd, upon signing the agreement. "The transaction
increases the value of the Company and therefore also the value of our
shareholders' shares."

"By joining forces, we are creating a stronger, larger and more global
company with significant economies of scale and a considerably improved
competitive position," said Oscar Hasbún, CEO of CSAV. The combination of
CSAV's container shipping business with Hapag-Lloyd will result in annual
synergies of at least USD 300 million. Service networks and fleets of both
companies complement one another ideally. "The combination with CSAV, Latin
America's leading container shipping line, considerably strengthens
Hapag-Lloyd in this growth market and adds a strong position in the
North-South traffic to the company's global network and to its established
strength in East-West traffics", said Oscar Hasbún.

Order books are also complementary: While, at the end of April, Hapag-Lloyd
will put into service the last of ten 13,200 TEU vessels ordered for the
Far East trade, CSAV still has seven vessels, each of 9,300 TEU, scheduled
for delivery in 2014 and 2015. These container ships are specially designed
for the South American trade. "This means that we will have a young and
cost-efficient fleet. The use of optimum tonnage in the trades is one of
the key prerequisites for successful operations in the face of
international competition," said Oscar Hasbún.

Both companies also fit in other regards: CSAV, founded in 1872, and
Hapag-Lloyd, founded in 1847, share a similar blend of long tradition and
entrepreneurial vision for the future.

"By integrating CSAV's container business, Hapag-Lloyd is able to build on
its strengths and is therefore in an excellent position for future growth,"
said Michael Behrendt, adding: "This combination will further strengthen
our service portfolio and enable us to deliver an even better global
service to our clients."

The relevant corporate bodies of both companies have already approved the
merger. The closing of the transaction is subject to the approval of
competition authorities. Another condition is that not more than 5% of
total CSAV's minority shareholders exercise their appraisal rights till the
20th April. Until then, dissident CSAV shareholders have the right to
withdraw. The company defined that this appraisal right should be exercised
by holders of less than 5% of the company's total shares in order for the
merger with Hapag-Lloyd to be completed.

End of Corporate News


16.04.2014 Dissemination of a Corporate News, transmitted by DGAP - a
company of EQS Group AG.
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