The Chilean container shipping company CSAV has raised $330 million through a stock sale via a rights offering to the company's shareholders and a share auction.
The shipping company’s shareholders subscribed and paid for about 5.337 billion shares at a price of 4.883618 cents per share through a rights offering.
That $461 million represented 79 percent of the $330 million the company sought to raise in a capitalization.
An additional 1,413,449,408 shares were auctioned, raising $69 million remaining from the pre-emptive right period.
The Quiñenco conglomerate participated in both the rights offering and auction and has increased its shareholding in the company from 37.4 percent to 45.9 percent.
The other major shareholder in the company, Marinsa, subscribed to $20.4 million in new shares during the capital increase, resulting in a 9.7 percent sharehold in CSAV.
Oscar Hasbún, chief executive officer of CSAV, said he was satisfied with the results of the capitalization and noted “it provides strong support for the company from its shareholders and the market, and is also a sign of confidence in the development plan and investments that CSAV is carrying out”.
CSAV said the money raised by the share sale will allow it to buy seven new 9,300-TEU containerships. These will be delivered from the end of 2014 and replace vessels currently chartered by the company. With this acquisition, CSAV will align its percentage of own fleet with the industry average, much higher than the 8 percent that it had at the beginning of 2011.
The capitalization will also be used to repay the company’s total financial debt with Banco Latinoamericano de Comercio Exterior S.A. (BLADEX), linked to the prepayment of a loan to AFLAC which generated a gain of $53.8 million for CSAV. In addition, the capital increase will provide additional funds for continuing with the company’s development plans.
As the number of shares issued during the process was insufficient to meet the $500 million approved by last April’s extraordinary shareholders’ meeting, CSAV said its board will evaluate the possibility of calling for a further capital increase to complete the amount necessary to carry out the company’s investment plan.