FRANKFURT, May 29 (Reuters) – Shareholders of German shipping group Hapag-Lloyd on Monday approved a $400 million rights issue to fund a planned merger with United Arab Shipping Company, a company spokesman said.
The two companies last week announced the completion of a deal to create the world’s fifth-biggest shipping company.
The embattled industry has been suffering from low freight rates and rising fuel costs, although rates did pick up in the second quarter.
The capital increase, approved at the company’s annual general meeting in Hamburg, is due to be completed within six months. (Reporting by Jan Schwartz; Writing by Vera Eckert; Editing by Tom Sims and Christoph Steitz)
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