CMHI and CMA CGM complete the Terminal Link Transaction

11 Jun 2013

China Merchants Holdings (International) Company Limited ("CMHI") and CMA CGM are pleased to announce the completion on 11 June 2013 of the sale and purchase of the 49% equity stake in Terminal Link, upon the obtaining of all consents and approvals in various jurisdictions and the completion of certain pre-closing corporate reorganizations as stipulated under the terms of the Acquisition Agreement. CMHI's intention to acquire from CMA CGM 49% equity interest in Terminal Link for €400 million was announced earlier in January. The Completion was formalised by the signing by both parties of a Shareholders Agreement.

Among the many distinguished guests attended the signing ceremony in Luxembourg of the Shareholders Agreement were CMA CGM Executive Officer Farid Salem, China Merchants Group Vice President Raymond Yu, CMHI Deputy General Manager & CFO Zhang Rizhong, CMHI Assistant General Manager Oliver Lam, CMHI Executive Director of International Development Jared H. Zerbe.

Terminal Link owns 15 container terminals in 8 countries across four major continents, viz:

• Container Handling Zeebrugge at Zeebrugge (Belgium);
• Antwerp Gateway at Antwerp (Belgium);
• Terminal des Flandres at Dunkirk (France) ;
• Terminal de France and Terminal Nord at Le Havre (France);
• Terminal du Grand Ouest at Montoir (France) ;
• Eurofos at Fos (France) ;
• Somaport at Casablanca (Morocco);
• Eurogate Tanger at Tangiers (Morocco) ;
• Malta Freeport Terminal at Marsaxlokk (Malta);
• Terra Abidjan at Abidjan (Ivory Coast);
• Houston Terminal Link Texas at Houston (the United States) ;
• South Florida Container Terminal at Miami (the United States) ;
• Busan New Container Terminal at Busan (South Korea) ;
• Haicang Xinhaida Container Terminal at Xiamen (the PRC).

Farid Salem, CMA CGM’s Executive Officer, said: “CMA CGM is very pleased to enter a new strategic partnership with CMHI which will allow us to join our complementary forces to operate and further develop in Terminals investments.”

"The smooth completion of this transaction," China Merchants Group Assistant President & CMHI Managing Director Dr Hu Jianhua indicates," reflects the recognition and consent to the transaction from the governments from whose regulatory units consents and approvals were obtained. The process to seek approvals and consents has also helped to anchor Terminal Link's platform through which to further develop its ports businesses in these areas."

China Merchants Group & CMHI Chairman Dr Fu Yuning added, "On the back of a good working relationship already existing between our two organisations for more than 20 years, the linkage through Terminal Link between CMA CGM and CMHI not only marks a deeper and closer co-operation from here on, but also rolls out a joint and co-ordinated approach to developing the ports business with mutual interests that capitalises on the respective advantages and global network synergy of both parties, with a view to better facilitating international trade activities at the terminal locations through the provision by Terminal Link of more efficient and comprehensive services, whilst creating higher return on investment for our respective shareholders. "

CMA CGM press release