South Korean shipping major, HMM has signed a sales and purchase agreement with French counterpart, CMA CGM for the sale of its 50 per cent stake minus one share in Total Terminal International Algeciras (TTI Algeciras), a container terminal in the south of Spain.
Shares of TTI Algeciras are owned by HMM and HT Algeciras — a special purpose company wholly controlled by HMM. HMM directly owns a stake of 50 per cent minus one share, with the remaining 50 per cent stake plus one share held by HT Algeciras.
After selling its own 50 per cent stake minus one share in the terminal, HMM will still maintain its position as the largest shareholder through HT Algeciras.
The financial details including the price of the deal have not been disclosed.
This transaction, subject to regulatory approvals, is expected to be completed in Q4 2020 for joint operations to be started.
As informed, HMM expects a great synergy effect based on strategic cooperation with CMA CGM in terms of enhancing profitability and operational capabilities by securing additional cargoes.
“TTI Algeciras has a great geographical advantage to play an integral role as a transshipment hub located at the centre of containerised cargo flow on main trade lanes. We believe TTI Algeciras will take centre stage in the Gibraltar area as it has a high potential for future growth and development,” an HMM official said.
“We are expecting more business opportunities in the years to come based on stable operations of the terminal.”
TTI Algeciras, located in the south of Spain, a strategic point in the Strait of Gibraltar, is the first semi-automatic terminal in southern Europe and the Mediterranean area.—World Maritime News
