Freight Transport

Compañía Sud Americana de Vapores (CSAV), the Chile-based shipping company, achieved the largest capital raising operation in its history (US$659m) within the first pre-emptive option period of the capital increase of US$1,200m being carried out by the company.

The CSAV shareholders subscribed and paid for 3,222,357,834 shares at a price of US$0.2045 per share.

Of the total proceeds of the pre-emptive option, US$312m correspond to shareholders of the company other than the controllers, Quiñenco and Marinsa, including different investors, both private and institutional. A company statement said: "This figure is significant and very positive for CSAV as a reflection of the market, as it is a sign of the confidence there is in the new project which the board and management are carrying out, plus the high value that the market assigns to SAAM."

The other US$347m were contributed by Quiñenco and Marinsa, thus complying with the sum agreed at the shareholders meeting of last October when Marinsa committed to subscribe for US$100m of the capital increase. Quiñenco, for its part, subscribed for US$247m in this pre-emptive option period, an amount equivalent to 20.6% of the Luksic family holding company's participation in the shipping company.

With this placement, the first pre-emptive option period is concluded of the CSAV capital increase. But the process continues its course, with a second option period to take place with the remaining available share offered to third parties, both national and foreign. Once this second stage is finalized, and provided any shares remain unsubscribed, these will be offered again on a pre-emptive basis to the shareholders.

The steps described, adopted by the board of CSAV, would permit compliance with the condition made at the shareholders meeting of October 5 to raise at least US$1,100m for dividing CSAV and creating the new company SM SAAM.

Content provided in partnership with Transport Intelligence.