Chilean shipping firm Compania SudAmericana de Vapores (CSAV) is planning two capital increases for a total of up to US$600 million to get the funds necessary for a planned tie-up with Hapag-Lloyd.
Vapores is poised to take a 30 percent stake in Hapag-Lloyd, making it the single largest shareholder of the German shipping company, reported Reuters.
But low freight rates, high fuel prices and expensive leases mean the Chilean shipper, the majority of which is owned by the billionaire Luksic family, needs fresh funds.
Vapores will launch a $200 million capital hike in the first
half of the year to help finance the purchase of seven container ships from Samsung Heavy Industries, the company said in a statement.
If Vapores fails to raise the money, controlling group Quinenco will step in to buy the remaining shares.
That capital hike could be followed by another for up to $400 million, contingent on the completion of the tie-up with Hapag-Lloyd.
Vapores' board said the second capital hike, scheduled for the second half of 2014, would have to rake in at least $200 million.
The funds from the second increase would be used to subscribe to $354.31 million in Hapag-Lloyd's first capital increase, boosting Vapores' stake in the German company to around 34 percent.
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