Tuesday, February 18, 2014 CSAV raises capital for prospective merger with Hapag-LloydChilean container shipping firm Compania Sud Americana de Vapores will carry out two capital increases connected to an eventual merger with German shipping line Hapag-Lloyd, according to a CSAV statement. The first increase to raise $200 million will be held in March and will complete the financing of seven container vessels currently being built in Korea, and will also fulfill some conditions for closing of the planned merger with Hapag-Lloyd, CSAV said in a filing to Chile's regulating body. The second capital increase will happen only if the planned merger with Hapag Lloyd comes about, the statement said. This capital increase would be between $200 and $400 million, CSAV reports. Raising $200 million would allow CSAV to participate in Hapag-Lloyd's own planned capital increase of $506 million, which it is conducting to fund the closing of the merger. CSAV said it had planned to contribute about 70 percent or $354 million to Hapag Lloyd's capital increase. In January, the companies signed a memorandum of understanding to merge their sea transport businesses. If successful, CSAV says the merger will create the world's fourth-largest container shipping company in terms of capacity, with annual revenue of around $13 billion. The two companies began talks in December. More Newswire stories Asia food importers shift from dry bulk to container ships Port of Long Beach names new environmental planning director NYK ships more Middle East crude to Thailand Canadian National railway raises rates for older oil tank cars
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