YILDIRIM invests in CMA CGM

A final agreement has been reached between CMA CGM shareholders and YILDIRIM Group of Turkey, which enables CMA CGM to strengthen its equity base and secure the financing of its investment plan.

Under the terms of the agreement, YILDIRIM Group will invest $500 million in CMA CGM by acquiring five-year ORA equity notes giving access to 20% of CMA CGM’s share capital. YILDIRIM Group will also be given three seats on the ten-member board of directors. The historic family shareholder will retain a majority interest with 80% of outstanding shares and voting rights.

"This alliance with YILDIRIM Group will enable us to strengthen CMA CGM’s balance sheet," said Jacques Saadé, chairman of CMA CGM’s board of directors, adding that the arrival of a new investor will provide the Group with additional resources to support and step up its growth.

The agreement comes in a favourable environment for the Group, which reported revenue of $10.5 billion for the first nine months of 2010, a year-on-year increase of 38%.  Freight volumes for the same period increased by almost 18% year-on-year to 6.8 million TEU, and the Group achieved an operating margin 18.5%, one of the best performances of its sector.

These good results are attributable to the Group’s strategic choices, reflected in its investment policy in large vessels and its proactive cost reduction plan, together with the resumption of world trade and in particular, the growth in volumes on the Asia-Europe (up 21.1%) and Asia-US lines (up 15.4%) in the first nine months of the year.

To keep pace with the growth in freight volumes, CMA CGM has taken delivery of twelve new ships since the beginning of 2010, bringing the number of owned ships to a total of 92.  New ships have also been chartered in, bringing the total fleet to 400 units.