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Sayenko Kharenko Assists in Hapag-Lloyd/CSAV Merger

Ukraine
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Sayenko Kharenko has announced its participation in advising on the April 16, 2014 binding agreement pursuant to which Hapag-Lloyd will take over the container division of Compania Sud Americana de Vapores (CSAV).

As reported last month, the resulting company will be the fourth largest containership operator in the world, behind Maersk Line, Mediterranean Shipping, and CMA CGM. The new group will have a fleet of some 200 ships and carry an estimated 7.5 million TEU a year (the dimensions of one TEU (which stands for Twenty-Foot Equivalent Unit) are equal to that of a standard shipping container, 20 feet long, and 8 feet tall). The headquarters will remain in Hamburg -- with a strong regional office in Chile.  

CSAV generated approximately USD 3.4 billion in sales in the 2012 financial year, and at the moment has more than 5,000 employees and 54 container ships. The shipping company, founded in 1872, is headquartered in Valparaiso and Santiago de Chile.

As reported extensively in April, the merged company will have some 200 vessels and an annual turnover of EUR 9 billion. CSAV, Hapag-Lloyd, and its largest shareholders HGV Hamburger Gesellschaft fur Vermogens- und Beteiligungsmanagement (held by the City of Hamburg), and Kuhne Maritime agreed that CSAV will contribute its entire container business to Hapag-Lloyd, in exchange receiving a 30% stake in the combined entity. Once the transaction has been consummated a capital increase of EUR 370 million will be carried out, with Kuhne Maritime contributing EUR 111 million and CSAV EUR 259 million. This will then increase CSAV’s share of Hapag-Lloyd to 34%. A second capital increase of EUR 370 million will be linked to Hapag-Lloyd’s planned stock exchange listing, according to a statement released by the two companies. 

The deal will close later this year upon approval by various regulatory authorities. 

Sayenko Kharenko provided due diligence and general advice on Ukrainian law matters. The firm’s team for the transaction was led by Partner Vladimir Sayenko, and included Counsel Leonid Antonenko and Associate Oleksandr Bevz. As reported at the time, Linklaters advised CSAV, and the Gleiss Lutz team advising Hapag-Lloyd included Partners Andreas Rittstieg, Fred Wendt, and Johann Wagner, and lawyers Urszula Nartowska, Christian Mencke, and Christian Zimmermann.  

 

 

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