French shipping major CMA CGM completed the sale of a 90 percent equity interest in Global Gateway South terminal (GGS) in Los Angeles on December 1.
The stake was purchased by EQT Infrastructure III and its partner P5 Infrastructure (P5), for an enterprise value of USD 875 million. CMA CGM received a cash consideration of about USD 820 million.
The French carrier will remain a minority shareholder with 10 percent of the GGS terminal, which it acquired last year as part of Neptune Orient Lines (NOL), and will continue to be a major user of the facility, the company informed.
CMA CGM signed a binding agreement for the transaction on July 1, 2017.
The disposal of GGS enables CMA CGM to strengthen its financial structure in line with the plan communicated at the time of NOL’s acquisition in June 2016 and its strategy to focus on the shipping business while securing its operations through shared ownership of key terminals.
BNP Paribas and HSBC acted as financial advisors and Willkie Farr & Gallagher acted as legal advisor to CMA CGM.