French shipping firm CMA CGM is looking to raise approximately $2bn by divesting port and shipping assets to fund the takeover of Swiss logistics firm Ceva.
CMA CGM will sell its stake in ten port terminals to Terminal Link, its joint venture (JV) with China Merchants Port Holdings, for approximately $970m.
The Terminal Link deal will be financed by a $468m capital increase funded by China Merchants Port. The company will also provide a loan to finance the takeover.
Scheduled to be finalised in the first quarter of next year, the loan will be converted into a capital increase after a period of eight years.
An additional $860m will be raised through the sale and ship lease-back deal.
The world’s fourth-largest container operator also plans to raise a further $93m by selling its stake in an India-based logistics hub.
Remaining $100m will be raised using a securitisation programme related to customer receivables at Ceva.
CMA CGM CFO Michel Sirat said: “We have a lot of assets and we use them fully.”
He added that the company has no other divestments plans in the short term.
In April, CMA CGM acquired Ceva in a transaction valued at approximately $1.7bn as part of its strategy to diversify its operations and revenue generations.
Post-acquisition, Ceva has been a loss-making venture and CMA CGM expects that the acquired business will start generating profit in 2023.
CMA CGM manages operations in more than 160 countries through 755 agencies, 750 warehouses and a team of 110,000 staff.
The French shipping firm has a fleet of 509 vessels, serves 420 commercial ports and operates on more than 200 shipping lines.