Hapag-Lloyd Advances Plans for $500 Million IPO

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September 28, 2015


By Angela Cullen and Nicholas Brautlecht

(Bloomberg) — Hapag-Lloyd AG, Germany’s biggest shipping line, is seeking to raise $500 million from the sale of new shares as it presses ahead with an initial public offering even as a Chinese slowdown and a rout in Volkswagen AG shares sparked turmoil on stock markets.

Hapag-Lloyd expects to raise about $400 million from the sale of shares to institutional and retail investors, the Hamburg-based company said in a statement Monday. Core shareholders Kuehne Maritime and Cia. Sud Americana de Vapores, or CSAV, have agreed to place additional orders for a total of $100 million.

The proceeds will be used “for further investments in ships and containers to further strengthen its capital structure, long-term growth and profitability,” the company said in the statement.

A return to first-half profit prompted Hapag-Lloyd to push ahead with its IPO plan. The company is counting on volumes rising an average 3 percent to 5 percent over the next five years, Chief Executive Officer Rolf Habben Jansen said in a Sept. 23 interview in Hamburg. Hapag-Lloyd last year merged with shipping assets of Chile’s CSAV to create the world’s fourth- largest container line by capacity.

TUI AG, which owns 14 percent of Hapag-Lloyd, plans to sell shares in the IPO, according to the statement. Kuehne Maritime and CSAV have agreed to hold a stake of at least 51 percent for 10 years and to pool their voting rights.

Berenberg, Deutsche Bank and Goldman Sachs International will manage the sale as joint global coordinators and bookrunners. Citigroup, Credit Suisse, HSBC and UniCredit are additional joint bookrunners and DZ Bank, ING and M.M. Warburg & Co. will act as co-lead managers.

Volkswagen slid 34 percent last week, dragging Germany’s benchmark DAX Index down 2.3 percent, after the carmaker admitted cheating on U.S. emissions tests for years.

©2015 Bloomberg News

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