Thursday , 23 January 2020
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Hapag-Lloyd to conduct capital increase following UASC merger

Hapag-Lloyd will now carry out the capital increase that was agreed upon as part of its merger with United Arab Shipping Company (UASC) in an effort to reduce debt.

The gross proceeds are expected to amount to approx. €352m (US$414m) and will be primarily used for the repayment of debt.

The capital increase is backstopped by the primary shareholders CSAV Germany, Kuehne Maritime, Qatar Holding Germany and Saudi Arabia’s Public Investment Fund for a total of €352m (US$414m).

They have committed to exercise their subscription rights and to acquire new shares that are not acquired by other shareholders.

Rolf Habben Jansen, CEO of Hapag-Lloyd, said: “Following the successful merger with UASC, we will use the capital increase to strengthen our capital structure and to use the proceeds to reduce the leverage of the company.”