In a bold move that shook the maritime industry, Brazilian investment group Opportunity has entered into an agreement with French shipping giants CMA CGM to sell its stake in the prestigious Brazilian Port Terminal of Santos (STBP3). This transaction, announced on a late Sunday evening, is set to reshape the landscape of container terminal operations in Latin America.
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Deal Details:
- Opportunity, a venture founded by visionaries Daniel Dantas, Veronica Dantas, and Dorio Ferman back in 1994, made the decision to sell its 48% ownership to CMA CGM for an impressive R$ 15.3 per share. This amounted to a staggering R$ 13.2 billion (approximately US$ 2.4 billion), marking a 20.4% premium on the previous day’s closing price.
- The transaction, evaluated at a 12x EBITDA index, signifies a profitable venture for both parties involved. Santos Brasil, under the stewardship of Opportunity, operates Tecon Santos, the grandest container terminal in Brazil and one of the largest in all of Latin America. This terminal presently handles about 17% of the nation’s container traffic.
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CMA CGM’s Expansion Strategy:
- Renowned as the third-largest container operator across the globe, CMA CGM boasts a mammoth presence in 160 countries, possesses a fleet of 620 ships, and operates in 420 ports worldwide. By acquiring full control of the port of Santos, CMA CGM is positioning itself for an unparalleled strategic advantage in the region.
- The French juggernaut plans to buy out all the minority stakeholders in the container terminal at the same rate per share as agreed upon in the deal. This move underlines CMA CGM’s commitment to solidifying its foothold in key global ports.
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Key Players and Advisors:
- The negotiations were expertly facilitated by Rothschild & Co., advising the sellers, while former Vivendi CEO Jean-Marie Messier provided counseling for CMA CGM. These seasoned professionals played a pivotal role in steering the deal to a successful conclusion.
- Impact and Future Projections:
- This landmark agreement is projected to be finalized by year’s end, pending regulatory approvals from various authorities, including Cade, Antaq, and other port regulators. Shareholders stand to benefit from additional payouts per share until the deal is fully sealed.
- Opportunity expressed confidence in CMA CGM’s ability to enhance value creation and uphold the legacy of success that both entities have cultivated over the years. With a focus on infrastructure development, Opportunity remains optimistic about the prospects in Brazil and remains dedicated to contributing to the nation’s progress.
In a testament to their commitment, Opportunity has invested a staggering R$ 9 billion since their involvement in 1997, with a substantial portion allocated towards modernizing and expanding the infrastructure at Tecon Santos. From expanding the terminal area to tripling the quay length and more than tenfold increase in TEU capacity, this partnership has truly revolutionized operations at Brazil’s premier container terminal.
As this acquisition unfolds, the maritime landscape is set for a remarkable transformation. The synergy between Opportunity and CMA CGM promises a future brimming with innovation and growth in Brazil’s bustling port industry.
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