Chilean carrier CSAV has issued $412 million in new stock to complete a $1.2 million capital increase that is a key element in the company’s restructuring.
CSAV is counting on the additional capital, joint services with other carriers, replacement of chartered ships with owned tonnage and a spinoff of the SAAM terminal, tugs and logistics subsidiary to return the company to profitability.
“We have executed a deep and extensive restructuring of our shipping business, which places CSAV in a better position than it had before in order to benefit as soon as market equibrium returns to the industry,” said Oscar Hasbun, chief executive of CSAV’s container unit.
CSAV reported a $145.3 million loss from continuing operations in the fourth quarter following losses of $300.8 million in the third quarter, $331.4 million in the second quarter and $181.9 million in first quarter of 2011.
The $1.2 billion capital increase included $547 million invested by the Luksic family’s Quenenco group, which now holds 37.44 percent of the company. Marinsa, controlled by the Claro group, purchased $100 million, and has a 12.35 percent stake. Other shareholders and third parties acquired $533 million.
The capital increase clears the way for a spinoff of CSAV’s SAAM unit, which has been renamed SM-SAAM.
CSAV is reducing its carrying capacity, which it said will eventually be about 50 percent less than in early 2011. CSAV now depends on joint services with other carriers for almost 90 percent of its volume, up from about 30 percent in early 2011. Meanwhile, CSAV has increased the percentage of owned ships in its fleet to more than 30 percent from 9 percent in early 2011.