Chile Vapores seeks OK for $1.2 bln capital increase
Chilean shipper Compania Sud Americana de Vapores SA (VAPORES.SN) will ask for approval of a $1.2 billion capital increase at a shareholders meeting on October 8, the company said Friday, Dow Jones Newswires reports.
Vapores, which has been weighed down by hefty ship and container leasing fees, falling transport prices, and rising international oil prices, posted a first-half net loss of $527.1 million. During the first six months of 2010, the company posted a net profit of $30.4 million.
The Chilean company, Latin America's largest shipper, already raised $500 million through a capital increase earlier this year and has shareholder approval to increase that to $1.0 billion.
Vapores will forego the outstanding $500 million from the first capital increase it received approval for, in favor of the new capital increase.
"We will take the $500 million we already raised and look for approval for another $1.2 billion, for a total of $1.7 billion," said a company spokeswoman.
Vapores has a $1 billion investment plan through 2012 to increase the number of ships its owns and thereby reduce its leasing fees.
Additionally, Vapores requested a $350 million credit line from its controllers.
Chile's Luksic family, through their Quinenco SA (QUINENCO.SN) holding company, and the local Claro family, through Maritima de Inversiones SA (MARINSA.SN) holding company, each own roughly a 20% stake in Vapores.
Quinenco has agreed to offer Vapores a $250 million credit line and plans to subscribe to $1 billion of the new capital increase if approved by shareholders, thus taking a majority stake in the shipping company.
The Luksic family, reportedly Chile's richest, purchased its stake in Vapores earlier this year and brought its business-savvy managerial style to the company. They also control London-listed mining company Antofagasta PLC (ANTO.LN), brewer Compania Cervecerias Unidas SA (CCU, CCU.SN) and the country's second-largest bank, Banco de Chile (BCH, CHILE.SN), among other assets.
The Claro's Marinsa holding company, meanwhile, will offer Vapores a $100 million credit line and has agreed to subscribe to a similar $100 million of the new capital increase.
Vapores' controllers will also ask to divide the company's cargo shipping business from the other services it provides ships and cargo.
Faced with an unfavorable scenario, Vapores recently signed an agreement for joint-shipping operations with Mediterranean Shipping Company SA, or MSC.
Vapores, which has been weighed down by hefty ship and container leasing fees, falling transport prices, and rising international oil prices, posted a first-half net loss of $527.1 million. During the first six months of 2010, the company posted a net profit of $30.4 million.
The Chilean company, Latin America's largest shipper, already raised $500 million through a capital increase earlier this year and has shareholder approval to increase that to $1.0 billion.
Vapores will forego the outstanding $500 million from the first capital increase it received approval for, in favor of the new capital increase.
"We will take the $500 million we already raised and look for approval for another $1.2 billion, for a total of $1.7 billion," said a company spokeswoman.
Vapores has a $1 billion investment plan through 2012 to increase the number of ships its owns and thereby reduce its leasing fees.
Additionally, Vapores requested a $350 million credit line from its controllers.
Chile's Luksic family, through their Quinenco SA (QUINENCO.SN) holding company, and the local Claro family, through Maritima de Inversiones SA (MARINSA.SN) holding company, each own roughly a 20% stake in Vapores.
Quinenco has agreed to offer Vapores a $250 million credit line and plans to subscribe to $1 billion of the new capital increase if approved by shareholders, thus taking a majority stake in the shipping company.
The Luksic family, reportedly Chile's richest, purchased its stake in Vapores earlier this year and brought its business-savvy managerial style to the company. They also control London-listed mining company Antofagasta PLC (ANTO.LN), brewer Compania Cervecerias Unidas SA (CCU, CCU.SN) and the country's second-largest bank, Banco de Chile (BCH, CHILE.SN), among other assets.
The Claro's Marinsa holding company, meanwhile, will offer Vapores a $100 million credit line and has agreed to subscribe to a similar $100 million of the new capital increase.
Vapores' controllers will also ask to divide the company's cargo shipping business from the other services it provides ships and cargo.
Faced with an unfavorable scenario, Vapores recently signed an agreement for joint-shipping operations with Mediterranean Shipping Company SA, or MSC.