PARIS, Dec 9 (Reuters) - Shipping group CMA CGM is seeking to raise around 325 million euros ($378.3 million) by issuing a three-year bond which it will be able to reimburse with its shares in Air
CMA CGM's Bond Strategy Involving Air France-KLM Shares
PARIS, Dec 9 (Reuters) - Shipping group CMA CGM is seeking to raise around 325 million euros ($378.3 million) by issuing a three-year bond which it will be able to reimburse with its shares in Air France-KLM, CMA CGM said on Tuesday.
CMA CGM will also have the possibility of repaying the bond in cash, or through a mix of cash and Air France-KLM shares, it added.
CMA CGM holds 8.8% of Air France-KLM's capital after becoming a shareholder in 2022 when it formed an air freight partnership with the airline.
The companies scrapped the cargo partnership in early 2024 and a lock-up on CMA CGM's stake ended in February this year.
"CMA CGM remains a shareholder of Air France-KLM, confident in its management team, and further retains upside potential in Air France-KLM's share price,” CMA CGM's Chief Financial Officer Ramon Fernandez said in the statement.
"CMA CGM is issuing this exchangeable bond that it views as a cost-efficient financing allowing the Group to diversify its funding sources," he said.
Under the proposed bond, a reimbursement through Air France-KLM shares will represent a premium of between 30% and 35% over the average price of the shares on December 9, CMA CGM said.
CMA CGM, the world's third-largest container shipping line, has continued to invest in its own air cargo division and extend its footprint in land logistics through its CEVA subsidiary.
CMA CGM and the Saade family, which founded and controls the Marseille-based group, have also invested outside transport by acquiring media assets and by investing in leading French firms like supermarket retailer Carrefour.
($1 = 0.8590 euros)
(Reporting by Gus Trompiz; Editing by Sudip Kar-Gupta and Susan Fenton)
