Canada's CPPIB to Buy Ports America from Oaktree
Canada Pension Plan Investment Board (CPPIB) said on Wednesday it had agreed to buy Ports America, one of the largest marine terminal operators in the United States, from investment firm Oaktree Capital Management LP.While no valuation was given in the announcement statement, the deal values Ports America at over $4 billion, according to two sources familiar with the matter.The transaction comes amid heightened interest in logistics, with supply-chain disruption in focus as the…
Yildirim to Sell its Stake in CMA CGM
Turkish port operator Yildirim Holdings AS has announced plans to sell its 24 percent stake in the French shipping major CMA CGM, Bloomberg reported. The company mandated China Citic Bank Corp. to find investors from Asia or the Persian Gulf for its interest in the world’s third biggest container shipping company. “We will either exit our investment completely or remain as an ordinary shareholder,” said Yildirim. Yildirim invested $600 million to become a shareholder in CMA CGM between 2010 and 2011. According to the company, the current value of the shares ranges between USD 2.5-3 billion based on recent deals in the industry. A report in Hürriyet CMA CGM has confirmed it is in talks with the Yildirim Group over the sale of the Turkish conglomerate’s 24% stake.
DMR Sees US Container Terminal Sector M&A Flurry
M&A (Merger & Acquisition) activity in the US container terminal sector is currently at its highest level since the boom time of the mid-2000s. However, whilst the type of buyer is largely similar to what it was, the rationale for pursuing today’s deals is different, considers Drewry Maritime Research (DMR) in their latest 'Container Insight Weekly'. The US container terminal sector has seen numerous high profile deals so far this year.Most of the parties on the buy side of the deals are infrastructure and financial players – the same type of buyers that were most active in acquiring US terminals in the mid-2000s. Their aims and motivations today though are somewhat different to what they were.
Ports America Announces Refinancing
The Ports America Companies successfully refinanced the debt facilities of both Ports America, Inc. (PAI) and MTC Holdings, Inc. (MTC) into a single, unified capital structure. The refinancing consisted of a new five-year, $475-million senior secured credit facility, including $170 million of revolving credit and letter of credit facilities, and a new seven-year, $375-million Holdco financing. The senior facility was provided by a group of new and existing lenders and led by Royal Bank of Canada. The Holdco facility was provided by CPPIB Credit Investments Inc., a wholly-owned subsidiary of Canada Pension Plan Investment Board (CPPIB), a global institutional investor with more than $190 billion of assets under management and a leading infrastructure and credit investor.
Ports America Appoints Tilden
Douglas Tilden has been named to the advisory board of Ports America Group. Tilden most recently served as chairman of Ports America Group, the largest stevedoring and terminal operating company in the Americas providing services at 97 terminals in 50 U.S. ports. Ports America Group (PAG) is an affiliated group of terminal operating companies owned by Highstar Capital, a leading infrastructure fund. Tilden’s career in the shipping industry began in 1969 with United States Lines. His most recent position as chairman of Ports America Group led to his appointment as senior strategic analyst to the advisory board, which oversees the operation of Ports America Group.
