CMA CGM has completed its sale of a 90% stake in Global Gateway South Terminal in Los Angeles.
The stake has been sold for about US$820m to EQT Infrastructure III and its partner P5 Infrastructure. The terminal was valued at US$875m.
CMA CGM will remain a minority shareholder with 10% of the GGS terminal and will continue to be a major user of the facility.
According to a CMA CGM statement, the disposal of the terminal enables the company to “strengthen its financial structure in line with the plan communicated at the time of Neptune Orient Line’s (NOL) acquisition in June 2016”. CMA CGM inherited the terminal when it purchased NOL.
The sale enables the French carrier to complete a financial debt reduction plan, which it began in December 2015 when it acquired Singapore-based carrier NOL. The target was to deleverage its balance sheet within 18-24 months through synergies and asset sales, worth at least US$1bn.